- S&P 500 again steadies after refreshing the highest since February.
- A lack of major data/events restricts the market moves.
- US dollar weakness favors commodities and Antipodeans.
- Sino-American tension joins virus woes and stimulus deadlock to question the optimists.
S&P 500 Futures await fresh clues to extend the early-Asian run-up to the six-month top near 3,390. The risk barometer currently takes rounds to 3,385 after flashing the multi-day peak of 3,387.62.
Although the bulls are cheering weak US dollar and the recently downbeat coronavirus (COVID-19) numbers from America, a lack of major catalysts restricts the equity derivative’s immediate momentum. On the contrary, US-China tussle joins the virus woes and no announcement of the American stimulus to challenge the bulls.
Following the blacklisting of 38 Huawei products, the US government arrested former CIA agent while identifying him as Beijing’s spy. This adds to the already strained relations between the world’s top two economies that recently dumped the bi-annual trade review meeting.
Elsewhere, the latest surge in the virus figures from Germany and France flags the red signal to all those expecting sooner bounce back from the pandemic. It’s worth mentioning that the US policymaker’s return from the one-month-long vacation isn’t scheduled to discuss the aid package but traders keep searching for indirect hints to boost the equities toward record highs.
On a different front, Japan’s Reuters-Tankan Manufacturing Sentiment recovered in August while Canada’s Finance Minister Bill Morneau resigned in a surprise move.
Amid all these catalysts, US 10-year Treasury yields remain on the back foot near 0.68% whereas Japan’s Nikkei 225 also portrays mild weakness. Though, stocks in Australia and New Zealand remain upbeat while taking clues from the previous day’s gain by Chinese stocks and mildly positive performance of Wall Street benchmark.
Moving on, a light data calendar keeps traders directed towards news feeds for fresh impetus to challenge the record tops and spread optimism, if possible.
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