US stock futures slip as virus outbreak dwarfs fiscal stimulus

US stock futures slid in Asian trade on Wednesday as pandemic fears grew on policy support to protect economies from fallout. 

U.S. stock futures dropped 2.0%, following a 6.00% gain in S&P 500 on Tuesday, recovering half of its losses on Monday.

S&P 500’s gain came after the coordination of global fiscal policies in order to underpin economies amid containing the virus.

The U.S. government has released a $1 trillion stimulus package to reinforce the country’s struggling economy. Other countries have relied on fiscal stimulus to support their economies.

Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management said that the stock markets will most likely remain affected by the virus spread.

Overall, the S&P 500 futures remain at a 9% loss this week.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1%, while Japan’s Nikkei went up 1.9%.

The U.S. 30-year bond yield climbed 38 basis points, at 1.648% on Tuesday.

In the foreign exchange market, a shortage in US dollar cash supported the currency.

Australian dollar recovered to $0.5990, after hitting a 17-year low of $0.5958. The New Zealand dollar was at $0.5946, after plunging to an 11-year sink of $0.5919.

The US dollar steadied against most currencies, but slid 0.25%, at 107.28 against the Japanese yen.