- S&P 500 Futures snap four-day losing streak, gains 0.55% intraday.
- US President Trump teases biggest stimulus plan, signals virus vaccine to arrive soon.
- Pelosi gave Tuesday’s ultimatum to the White House for COVID-19 relief package talks.
- No-deal Brexit fears, virus wave 2.0 and news concerning China probe market bulls.
S&P 500 Futures take the bids near $34.83, up 21.87 points or 0.63% intraday, during the initial hour of Tokyo open on Monday. The latest speech from US President Donald Trump helps the risk barometer to keep late Friday’s optimism despite ingrained challenges to the market sentiment.
Having earlier shown readiness for a short-term unemployment benefit plan, Trump said that he wants the biggest stimulus deal than US House Speaker Nancy Pelosi’s proposal. The Democratic member Pelosi earlier gave time till Tuesday night to the White House to wrap-up the coronavirus (COVID-19) stimulus negotiations. Also on the market positive side is Trump’s comment that the COVID-19 vaccine will be out very soon.
Alternatively, UK PM Boris Johnson’s preparations for the no-deal Brexit joins record high virus figures from Europe to challenge the risk-on sentiment. Further, China’s passage of a law to restrict controlled exports precedes Taiwan’s attempt to tighten technology transfer rules to Beijing-based companies while probing the optimists.
Not only the US stock futures, stocks in Asia-Pacific and the US 10-year Treasury yields also portray the market optimism. However, fears that major issues like US stimulus, COVID-19 and Brexit are likely to remain unsolved keeps the risks tamed.
It’s worth mentioning that the recovery in the US consumer-centric figures published on Friday, namely Retail Sales and Michigan Consumer Sentiment Index, also likely to have favored the market’s upbeat mood.
While China’s third-quarter (Q3) GDP and September month’s data dump can offer immediate direction to global markets, traders will be interested in today’s speech from ECB President Christine Lagarde and Fed Chair Jerome Powell for fresh directions. Also, the European Union’s (EU) chief Brexit negotiator Michael Barnier is going to visit London for another effort to seal the trade deal on Monday and hence any updates from there will also be the key to follow.
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