- S&P 500 Futures defy the previous day’s pause to two-day losing streak.
- Sino-American tussle gains momentum after US bans import from Xinjiang.
- China may get COVID-19 vaccine in November, US challenges AstraZeneca’s vaccine trial restart.
- Brexit woes strengthen as attempts to block the Internal Market Bill fail in the UK.
S&P 500 Futures fade the previous day’s upside momentum while taking rounds to 3,370 during the early Tuesday. The risk barometer recently struggled amid the Trump administration’s ban on certain Chinese products and the Global Times confidence over the coronavirus (COVID-19) vaccine.
The US bans the import of certain apparel and computer parts from China, saying they are made by forced laborers from the Xinjiang region, as per the latest report from the Washington Post. The news follows the American State Department’s announcement suggesting the ‘Reconsider Travel’ warning.
It should also be noted that Global Times recently mentioned that the Phase III clinical trial went very smoothly, the vaccine could be ready by November/December. The update joins Pfizer’s optimism to provide the pandemic’s cure during this year to the US. Even so, US regulators’ probe into the serious UK side effect of the AstraZeneca usage dims the vaccine hope.
Other than the trade/virus stories, the recent victory of the UK’s ruling Conservative Party-backed Internal Market Bill (IMB) into the House of Commons also challenges the risk-tone sentiment. The bill defied the opposition Labour Party’s motion for blockage but is yet to be announced as a law.
It should also be noted that the market sentiment began the key week on a positive side as traders trust global central bankers to tame the pandemic-led losses. The same helped Wall Street benchmarks to close with over 1.0% by the end of Monday.
Moving on, China’s August month data-dump will precede the UK’s employment numbers and the US NY Empire State Manufacturing Index to offer a busy day ahead. Also likely to direct the market sentiment could be headlines from Brussels where the UK and the European Union (EU) leaders will meet for Brexit talks.
Additionally, any updates concerning the US stimulus can offer surprise moves to the global traders and hence become worth observing.
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