- S&P 500 Futures keep late-Friday gains with the recent bounce from 3,255.
- Apple’s upbeat performance favored the bulls despite US policymakers’ failure to announce fiscal plans.
- Coronavirus woes add to the upside barrier but hopes of further stimulus seem to favor the bulls off-late.
- The early-month PMIs will offer immediate direction, risk catalysts remain as the key.
S&P 500 Futures carry Friday’s recovery moves while picking up the bids near 3,270, up 0.17% on a day, during the initial Tokyo open on Monday. The market’s risk barometer defies the current pessimism fuelled by the coronavirus (COVID-19) woes. Also threatening the sentiment is the US Senate members’ failure to agree on the much-awaited stimulus.
Even if the American unemployment claim benefits expired on Friday, the US policymakers failed to offer any update on the key COVID-19 help. The Senators are also struck on the main outlay of the plan with Democrats favoring $3.5 trillion and Republicans offering $1.0 trillion for the use.
Recently, House Speaker Nancy Pelosi said US President Trump standing in way of enhanced unemployment benefits. On the other hand, US Treasury Secretary Steve Mnuchin mentioned during the ABC interview that we need to be careful about not piling on enormous debt for future generations.
Talking about the virus impact, Victoria has been badly affected by off-late. The Aussie state diplomats announced the “state of disaster” following +670 numbers of new cases while also extending the lockdown restrictions for another six weeks. Elsewhere, figures from the US stabilize around 60,000 per day while numbers from Tokyo recede to 292 on Sunday from 400 during the previous two days, per Reuters.
On the contrary, upbeat earnings from tech giants and Apple’s world leader status seem to underpin the equities recently. Also favoring the buyers are hopes that the global policymakers will pump more money to combat the pandemic.
Looking forward, the early-month activity data will be the key for the near-term trade direction. However, virus updates and news concerning the US fiscal stimulus will be the key.
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