- S&P 500 Futures extend recovery moves from 3,107.68.
- Further easing of lockdown restrictions on Japan, mixed virus updates and US-China jitters confuse traders.
- Recovery in global PMIs, hopes of further stimulus kept the bulls happy the previous day.
- RBNZ, Fedspeak and second-tier data will offer background music while trade, virus updates to remain as the key drivers.
S&P 500 Futures recovers from the intraday low to 3,122, up 0.10% on a day, amid the initial hour of Tokyo open on Wednesday. The risk barometer recently benefited from Japan’s easing of lockdown and cautious optimism spread through the BOJ Summary of Opinions. Though, Sino-American tension and fears of the coronavirus (COVID-19) wave 2.0 probe the risk-on sentiment.
The US policymakers’ efforts to defy the odds favoring the break of the phase-one deal failed to impress China’s Global Times. The state-backed media criticized the Trump administrator’s act while also citing a biased attitude towards Huawei. Also highlighting the trade war risks could be the US Department of State’s anti-dumping investigation against major Asian tire exporters.
Elsewhere, receding virus figures from Beijing confronts downbeat updates from Victoria, South Korea and Texas. Further, Japan’s easing of lockdown restrictions and a $1.5 trillion infrastructure plan join broad recoveries in the global PMIs to keep the traders hopeful.
Meanwhile, US 10-year Treasury yields and Asian stocks follow the footsteps of the US equity benchmark and portray mild optimism. However, cautious mood ahead of the RBNZ’s monetary policy meeting and comments from the US Federal Reserve policymakers seem to restrict the momentum.
Other than the scheduled data/events, investors will keep eyes on the updates concerning the Sino-American tussle and pandemic outbreak for further direction.
Share
