- S&P 500 Futures print mild gains, rises for the third day.
- Fed stayed cautiously optimistic with readiness to act, Capitol Hill struggles to deliver the US stimulus.
- USTR urges to stay strict on China, Beijing steps back from Military meeting.
S&P 500 Futures pick up the bids around 3,698, up 0.10% intraday, during early Thursday. The risk barometer rises for the third consecutive day amid hopes that the US coronavirus (COVID-19) stimulus will be announced soon. Also favoring the upside momentum could be the expectations that the virus vaccine will trigger economic recovery from next year. Though, US Federal Reserve’s mentioning of “disinflationary pressure” and the Sino-American tension test the market optimism.
Even if the US Congress members’ taking time to announce the much-awaited aid package, their optimism to get it done, as conveyed by US Senate Majority and Minority Leaders off-late, keeps the buyers hopeful. Also on the positive side could be the comments from the US Health official Anthony Fauci who said the US could return to normal by mid-fall if most people get the covid vaccine.
Also on the positive side could be the US Food and Drug Administration’s (FDA) comments suggesting more vaccine inside the Pfizer-BioNTech vaccine vials can help more Americans. Further, the UK and the European Union (EU) are clearing major hurdles one-by-one and increases the Brexit optimism.
On the contrary, US Trade Representative Robert Lighthizer’s push to keep the hard US stand against China and the dragon nation’s rejection of pre-scheduled military talks portrays the return of Sino-American tension. Additionally, fears of a strong virus infection wave in the Northern Hemisphere add barriers to an upbeat mood.
While S&P 500 Futures print mild gains, stocks in Asia-Pacific trade mixed by press time. Further, the US 10-year treasury yields gain 1.1 basis points (bps) to 0.93% by press time.
Looking forward, Brexit and US covid headlines will be the key to celebrate the 2020 Christmas.
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