- S&P 500 Futures rise for the second day after Friday’s pullback from late-September low.
- Recently upbeat PMIs join cautious optimism over the American presidential election to favor risks.
- A light calendar reduces the market uncertainty and helps stretch the earlier recovery momentum.
S&P 500 Futures takes the bids around 3,321, up 0.50% on a day, during early Tuesday. In doing so, the risk barometer remains positive after marking the heaviest gains in the last three weeks during the previous day.
While searching for clues, global traders can mostly witness welcome activity numbers from China, the US and Europe as the key reasons. Also supporting the optimism could be news the European Union (EU) and the UK are near to agreeing over the fishing rights in the British sea, a key hurdle for Brexit.
However, market sentiment remains cautious ahead of the key US presidential elections while the coronavirus (COVID-19) resurgence also challenges the bulls. A recent poll suggests a blue wave in the US, a condition where the Democratic Party retakes controls of both the American houses. Though, the race is getting exciting in certain states where Republicans have a stronghold. Elsewhere, Fitch cited worries over the receding pace of US employment recovery due to the pandemic while the UK became the latest nation to announce the broad activity restrictions.
Markets in Japan are closed for the day while major traders await the monetary policy meeting decision from the Reserve Bank of Australia (RBA). Also entertaining the market players are geopolitical headlines from Europe where attacks in Vienna tried to tame the risk but couldn’t.
Looking forward, RBA is likely to please the bears with a rate and additional quantitative easing (QE). However, any surprises can offer notable moves during the likely dull day in Asia.
Read: 2020 US Elections: Equities in three scenarios
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