- S&P 500 Futures begins the week with a gap-up opening to 3,537.38, the highest since October 12.
- Asia-Pacific shares also gain over 1.0% as equity bulls extend post-election rally.
- Virus woes fail to defy the market optimism amid a light calendar.
S&P 500 Futures mark 1.0% gains while taking rounds to 3,535 during the initial hour of Tokyo open. The risk barometer ticked up to the four-week high at the start of the week’s trading as global investors cheer Democratic candidate Joe Biden’s victory in the US presidential elections.
Even if Donald Trump has already filed multiple lawsuits and has recently gained support from a whistleblower from Nevada, fewer believe that the Republican member will be able to keep the White House leadership. Though, challenges to Biden can’t be ruled out as Republicans are dominant in the Senate.
Also probing the market bulls could be the recent increase in the coronavirus (COVID-19) cases from the US and Europe. While the global cases grew past-50 million off-late, the number from the developed economies suggests further hardships for the global economic recovery. As per the latest readings from Reuters, US numbers have been beyond 100,000 during the last three days versus over 300K figures from the bloc.
Alternatively, optimism concerning Brexit joins the positives to propel the market’s risk-on mood. the European Union’s (EU) Brexit negotiator Michel Barnier recently said, as per Reuters, that he is very happy to be back in London for Brexit talks.
Amid all these catalysts, risk indicators like equities and bond yields have been better bid recently. While portraying the mood, Japan’s Nikkei 225, Australia’s ASX 200 and New Zealand’s NZX 50 have are up beyond 1.0% on average by press time.
Moving on, President-elect Biden is up for conveying the details of the COVID-19 task force team and can offer additional strength to the market’s optimism. Though, any surprise challenges to the Democrat’s leadership may trigger the pullback in riskier assets.
Also read: S&P 500 Weekly Forecast: Stocks focussed on the battle for the Senate
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