S&P 500 Futures drop 0.50% as US President Trump obstructs covid stimulus

• S&P 500 Futures wavers around intraday low under 3,700, flashed recently, amid fresh risk-off.
• US President Donald Trump terms COVID-19 relief package ‘disgrace’, asked Congress to add stimulus.
• Brexit woes, fears of widespread lockdowns in the UK also weigh on sentiment.

S&P 500 Futures sold off following the news suggesting hardships for the US coronavirus (COVID-19) aid package and government stimulus. The risk barometer flashed over 0.50% losses while declining to the intraday low of 3,652, currently down 0.42% on a day around 3,662, during early Wednesday.

 “President Donald Trump, in a stunning Tuesday night tweet, called the $900 billion Covid relief bill passed by Congress an unsuitable “disgrace” and urged lawmakers to make a number of changes to the measure, including bigger direct payments to individuals and families,” said CNBC.

Read: Risk-off: Trump calls covid relief bill unsuitable and demands Congress add bigger stimulus payments

It should be noted that the fears of more UK areas to be marked under lockdown, due to the covid, as well as no Brexit deal in sight, offer an extra burden on the market sentiment.

Furthermore, the Sino-American tussle escalates after the US Homeland Security Department issued a warning over the use of data linked from Chinese companies. Axios said, “to warn US companies of the risk of Chinese government-sponsored data theft that can occur through US business partnerships with Chinese companies, or through the use of their products and services.”

Other than the risk-off play showed by S&P 500 Futures, stocks in Asia-Pacific are also on the back foot and propel the rush to risk-safety.

Although updates relating to the US aid package will be the key, Brexit, and the UK’s virus updates, not to forget developments on the US-China story, will also be important to watch for near-term market direction.