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  • S&P 500 Futures defies the previous day’s bearish performance while bouncing off 3,208.
  • US Federal Reserve’s extension of stimulus deadlines underpins risk reset ahead of the monetary policy meeting.
  • American Senators jostles to agree over fiscal aid package, Fitch revises down Japan’s credit outlook.

S&P 500 Futures prints 0.18% gains while taking rounds to 3,220 during the early hours of Tokyo open on Wednesday. The global risk barometer defies Tuesday’s losses while flashing mild strength.

The moves could be traced to the Federal Reserve’s action of stretching the previous stimulus measures’ deadlines from September to the year’s end. Also likely to offer a distant push could be US President Donald Trump’s push for the coronavirus (COVID-19) vaccine and S&P’s revision of Tesla’s credit rating and outlook from B-/Positive to B+/Stable.

On the contrary, the latest comments from the US policymakers suggest no progress and a further lag in the much-awaited fiscal package. Also weighing on the market sentiment could be the virus wave 2.0 and Fitch’s latest downgrade of Japan’s outlook to negative while keeping rating at A+.

Amid all these plays, the US 10-year Treasury yields stay depressed near 0.58% whereas Japan’s Nikkei 225 drops 0.68% to 22,503 by the press time.

Given the presence of the US Fed monetary policy meeting, global traders may pay a little heed any other data/events and can portray the pre-Fed trading lull. However, virus woes, uncertainty over the American aid package and the US-China tussle could keep the risk-tone heavy.