- S&P 500 Futures refresh all-time high around mid-3,900s.
- Vaccine rollouts in New Zealand, Australia and Japan favor sentiment amid no new virus cases in Auckland.
- Hopes of easing activity restrictions in the UK, upbeat Japan GDP add to the market’s positive tone.
- Light calendar, off in China, the US to restrict market moves but risk catalysts remain as the key.
S&P 500 Futures prints 0.35% intraday gains while staying firm around 3,945 during early Monday. The risk barometer recently refreshed the record top figures to 3,946.50 while following Friday’s Wall Street moves. Also favoring the bulls could be the recent optimism concerning the coronavirus (COVID-19) and its vaccines.
Although news of fresh lockdown in New Zealand (NZ) initially challenges the risk-on mood, the fresh update suggesting no new covid cases back NZ PM Jacinda Ardern’s hopes of overcoming the pandemic, as they did earlier. Also on the positive side could be the receding virus numbers from the West.
Furthermore, the UK’s successful vaccinations of over 15 million Britons renew calls of easing the virus-led lockdowns. Also on the same line could be the chatters surrounding the vaccine arrival in Australia and Japan.
It’s worth mentioning that US President Joe Biden’s push for $1.9 trillion stimulus joins the recently downbeat American employment data, as well as fears of further weakness in jobs, to strengthen the needs of the much-awaited aid package.
It should, however, be noted that the World Health Organizations’ (WHO) statements conveying the fears of re-infection of the covid variants join reflation woes to challenge the bulls.
Amid these plays, the Asia-Pacific equities remain mostly bid whereas the US dollar index (DXY) fails to extend Friday’s recovery moves while staying depressed near the monthly low.
Considering the light calendar and no major catalysts, the risk-on momentum can extend, which in turn may keep the US dollar pressured while benefiting the commodities and Antipodeans.
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