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  • S&P 500 Futures defy the previous day’s halt to the upside momentum while refreshing record top.
  • Mixed catalysts trouble the bulls cheering vaccine, stimulus hopes.
  • China’s inflation joined other leading indicators suggesting the dragon nation is losing off-covid recovery.

S&P 500 Futures take the bids near 3,920, the record top, during early Wednesday. The risk barometer struggled the previous day as fears of relation challenged upbeat sentiment. However, downbeat inflation data from China and mixed US readings keep directing the market optimists towards cheering more stimulus and covid vaccines.

With the latest comments from Bank of Japan (BOJ) monetary policy board member Seiji Nakamura suggesting prolonged easy money policies from the Japanese central banker, global market players keep their stimulus hopes on the table. Also favoring the mood could be China’s downbeat Consumer Price Index (CPI) and Producer Price Index (PPI) for January that suggests the global commodity leader’s recent weakness and the need for further fiscal-monetary help.

On a broader scale, the US Congress debates the much-awaited stimulus worth $1.9 trillion and expects a sooner rollout. Also positive to the risks could be the coronavirus (COVID-19) vaccinations that have started directing research towards tackling the variants.

Alternatively, the World Health Organization’s (WHO) team is investigating the COVID-19 traces in China. With the dragon nation’s sour relations with the west, including some in Asia, global policymakers await clues to held Beijing responsible for the global worries. Also challenging the sentiment could be ex-US President Donald Trump’s impeachment trials that will be held during the coming days after policymakers asserted the decision in the second go.

Amid these plays, stocks in Japan trim early-day losses while those from China and Australia stay positive. Further, the US 10-year Treasury yields also regain upside momentum beyond 1.00% while flirting with the March 2020 highs by press time.

Looking forward, investors will keep their eyes on today’s US CPI data to confirm the reflation chatters. Also important will be Federal Reserve Chairman Jerome Powell’s speech scheduled for 19:00 GMT.

Read: US Consumer Price Index January Preview: Can consumer demand spur prices?