S&P 500 futures expiring in September slipped 0.3 percent to 1,120.10 as of 12:43 p.m. in Tokyo. The contract earlier rose as much as 0.8 percent. The U.S. equity benchmark plunged 4.7 percent to 1,123.53 last week, giving it a 16 percent loss since July 22.
“We’re at a point where the alarm bells are sounding,” Nick Maroutsos, a Sydney-based money manager who oversees the equivalent of about $4 billion at Kapstream Capital, said in a Bloomberg Television interview. “There needs to be a stop gap put in the market, so that people can have some sort of confidence that the Fed officials, as well as government officials, are standing by their side to help them through this.”
Record-low yields on U.S. Treasuries show traders expect Fed Chairman Ben S. Bernanke will signal as soon as this week that the central bank will begin a third round of asset purchases to boost the economy.
Barclays Plc said 10-year yields indicate traders have priced in $500 billion to $600 billion of Treasury purchases by the Fed. Citigroup Inc. said current rates can only be justified by more central-bank bond buying, also known as quantitative easing, or assuming the economy will shrink 2 percent.
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