S&P 500 futures drop amid spiking coronavirus cases in NSW, LA reinstates mask mandate

The risk sentiment remains sour on the final trading day of the week, as the resurgence of the coronavirus cases globally, thanks to the highly contagious Delta strain, is killing the investors’ appetite for riskier assets.

The risk-aversion market condition is reflective of a 0.20% drop in the S&P 500 futures, a risk barometer, as they ease back below 4,350 levels.

Most Asian indices are in the red, with the Japanese Nikkei 225 index leading the declines in the regional stock markets. The Nikkei 225 is down 1.15% while Chinese stocks are down about 0.50%. Australia’s ASX 200 is treading cautiously around 7,330.

Among the latest updates on the covid situation globally, the Australian largest state of New South Wales (Sydney capital city) recorded 97 new cases again this Friday. Australia's second-largest city of Melbourne imposed its fifth lockdown to combat the latest outbreak.

China reported 36 new covid cases, Indonesia reported 54,517 newly confirmed cases on Wednesday, the highest single-day spike, overtaking India as Asia’s COVID-19 epicentre.

Meanwhile, Los Angeles calls for mandatory masking up in indoor public places, which will go into effect midnight Saturday.