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  • S&P 500 Futures step back from two day high flashed on Thursday.
  • Passage of US Democrats’ COVID-19 bill, speculations over Trump’s virus infection recently crossed wires.
  • Hong Kong protests regain market attention, American policymakers prefer to make Taiwan the next China.
  • US employment data, stimulus talks will be the key amid off in Beijing, a light calendar in Asia.

S&P 500 Futures drop to 3,361, down 6.58 points or 0.20% intraday, amid the initial hour of Tokyo open. The risk barometer recently weighed down by chatters surrounding US President Donald Trump’s infection to the coronavirus (COVID-19) and American policymakers’ failures to break the deadlock over the COVID-19 stimulus talks.

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With the rumors concerning Trump administration employee Hope Hicks’ virus infection crossing wires, fears of the President also got infected weigh on the risk sentiment.

Further, the House passage of the Democrats’ $2.2 trillion COVID-19 bill was largely expected and doesn’t get any accolades as the key issue is to let the bill passed through the Senate where Republicans hold the reins. The latest update from Politico suggests that the Trump-led Republican party has recently struggled over the stimulus and may ease their stands to have relief before the election.

Elsewhere, the Financial Times (FT) spots large deployment of military forces in Hong Kong to tame the democracy protests while the South China Morning Post (SCMP) conveyed the US policymakers’ attraction to Taiwan. Both these issues indicate an escalation in the Sino-American tension and heavy the market’s mood.

It should also be noted that the European Union’s (EU) inclination to begin the charges against the UK for breaking the international law threatens the already downbeat Brexit talks, which in turn can add a burden on the risk sentiment.

On the contrary, stabilizing virus numbers from the US and the UK are likely a positive sign amid the off in China and a lack of data/events in Asia.

Against this backdrop, Japan’s Nikkei gains 0.30% whereas Australia’s ASX 200 is down 0.80% by the press time. Further, the US 10-year Treasury yields are also sluggish around 0.68% as we write.

While China’s absence and a light calendar in Asia can restrict the immediate global market moves ahead of the US employment data for September. Fears of the extended impasse in the US aid package negotiations may join the Sino-American tussle to weigh on the risk sentiment while going forward.

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