- S&P 500 Futures holds onto recovery gains from the seven-day low.
- The US fails to back allegations on China, the rate of virus-led fatalities soften.
- US-China trade war still on the cards.
- RBA, US ISM Non-Manufacturing PMI will decorate the calendar.
S&P Futures print 0.40% gains to 1,837, up 11 points, amid the initial Asian session on Tuesday. In doing so, the risk barometer extends the previous day’s recovery moves following mildly trade-positive catalysts.
Among them, the World Health Organization’s (WHO) refrain to back the US allegations on China seems to take the top. The Geneva-based institute said it didn’t receive any proof from the US that supports US diplomats’ claim that researches in China’s Wuhan Laboratory were the cause of the coronavirus (COVID-19) outbreak.
Also supporting the risk-reset could be the Reuters tally that signaled a declining rate of virus-led fatalities even if the toll surged past a quarter of the million globally.
It’s worth mentioning that the US 10-year Treasury yields cling to small losses around 0.63% as Japan’s off limits the bond moves.
Moving on, traders will keep eyes on the RBA’s monetary policy as the immediate catalyst while the US ISM Non-Manufacturing PMI and trad/virus updates could direct the markets next.
The RBA is widely anticipated to not alter the present monetary policy. However, traders will be interested in the rate statement as it will reflect the economic performance and forecasts amid the virus-hit environment.