- S&P 500 Futures ignore downbeat performance of US equities, take the bids of late.
- US President Biden prepared to send 20 million authorized covid jabs, China backs vaccine patent waiver.
- Kaplan reiterates need for tapering talk, still expects first rate hike in 2022.
- US data, Fedspeak keeps markets subdued ahead of Wednesday’s FOMC minutes.
S&P 500 Futures portray risk-on mood with 0.28% intraday gains, around 4,170, during early Tuesday. In doing so, the risk barometer differs from the US equity benchmarks that flashed first negative daily performance in three the previous day.
While checking the catalysts behind the move, optimism surrounding the coronavirus (COVID-19) vaccine could be cited as the major reason for the latest risk-on mood. US President Joe Biden is, for the first time, ready to share the American authorized covid vaccine, around 20 million doses, with the needy nations. Further, China backs the global drive to abandon vaccine patents and fasten cure production. Also, updates that COVID-19 jabs from Moderna and Pfizer are capable of taming the Indian variant of the virus offer extra support to the market bulls.
Elsewhere, Dallas Fed President Robert Kaplan reiterated his push for tapering talks while also continues to expect the first rate hike in 2022. This contrasts with the Fed Vice Chair Richard Clarida’s comments rejecting the need for policy adjustments.
It’s worth mentioning that the US push for Israel-Palestine peace joins upbeat commodity prices to offer an extra hand to the market optimism.
On the contrary, US-China tussles and the continuation of Gaza tension, as well as worsening virus conditions in Asia and reflation fears, tame the bulls.
Amid these plays, the US Treasury yields pick-up bids and so do Asian stocks. However, the US dollar index (DXY) bears the burden of upbeat sentiment and drops to a fresh one-week low.
Looking forward, a light calendar, outside Europe and the UK, can keep troubling market players ahead of Wednesday’s Federal Open Market Committee (FOMC) minutes.
Read: Wall Street Close: Inflation jitters offer a dull start to the week
Share
