- S&P 500 Futures rises for the fourth day amid hopes of economic recovery.
- US President Biden lauds stimulus, shows readiness to overcome the pandemic.
- Vaccine news flash mixed signals, US and Australia’s sour terms with China weigh on mood.
- US Michigan Consumer Sentiment Index, risk news eyed.
S&P 500 Futures pick up bids above 3,940, up 0.13% at 3,942 now, during Friday’s initial trading. The risk barometer recently benefited from US President Joe Biden’s first prime-time efforts to shore-up support for Democrats and lauded the administration’s work. However, chatters surrounding the coronavirus (COVID-19) and China seem to tame the bulls.
US President Joe Biden promised vaccines to all the American adults by May 01 while also eyeing “back to normal” activity rules before July. Even so, the lead politician stays cautious over the US employment markets.
Read: US President Biden: Stimulus to fuel faster US recovery; jobs outlook still dull
It should be noted that Biden’s indirect hints to shore ties with friends in Asia and futures stimulus also seem to favor the risks. Further, Novavax’s ability to tame the UK covid variants and the previous day’s passage of $1.9 trillion by the US Congress also please market players.
On the other hand, AstraZeneca’s acceptance of supply-chain problems likely to delay the EU vaccine commitments and fire in the Tesla factory weigh on the mood. Additionally, the Biden Administration’s extra hardships for Huawei suppliers and news concerning Australia’s dislike for Hong Kong’s human right violation as well as China’s intervention in concerning the political system and voting also challenge the sentiment. It should be noted that the ECB’s hidden fears for reflation seem to have offered extra barriers to the market’s optimism.
Amid these plays, stocks in Asia-Pacific stay positive whereas the US 10-year Treasury yields rise 1.4 basis points (bps) to 1.54% by the press time.
Given the broad optimism in the markets, investors will keep their eyes on the likely upbeat US consumer sentiment figures for March. However, risk catalysts remain the key.
Read: US Michigan Consumer Sentiment March Preview: The post-COVID blues
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