S&P 500 Futures stay below 3,700 even as Brexit deal, US stimulus become imminent

• S&P 500 Futures ease from intraday top amid a quiet session.
• EU official hints Brexit deal announcement on Thursday morning.
• US Democrats stay ready for $2,000 paycheck after President Trump’s rejection to the previous offer.

S&P 500 Futures wavers around 3,685/80, with no major intraday moves, amid Thursday’s Asian session. The risk barometer recently benefited from the Brexit optimism as well as news concerning the US coronavirus (COVID-19) aid package. However, a cautious mood ahead of the key events, coupled with a light calendar and year-end celebration mood, keeps the market less active.

Having initially heard that the Brexit deal is imminent, global markets await an official announcement from Brussels and London. While spokesperson of the European Union’s (EU) Chief Brexit Negotiator Michel Barnier said stated that the European Commission statement on the UK trade deal is expected on Thursday morning, The Sun states UK PM Boris Johnson’s Brexit announcement likely at 11:00 am GMT today.

US President Donald Trump also contributed towards entertaining the traders on a dull day. While his previous rejection of the US COVID-19 stimulus pushed Democratic Party members to show readiness in inflating the paycheck amount, the White House leaders’ turning down the defense bill and warning to Iran challenge the risks.

On a different page, the virus woes are getting stronger in the UK whereas tension between the West and China also escalates. It should also be noted that China’s investigation of Alibaba group over alleged monopolistic behavior also tried to dim the mood. Though, investors are more concerned about Brexit and the US aid package and paid little heed to the second-tier catalysts amid the holiday season.

Moving on, the Brexit announcement is likely to keep the markets happy, depending upon the terms of departure and trade, while US stimulus may add to the optimism. Further, the economic calendar is mostly silent but comments from BOJ Governor Haruhiko Kuroda can offer intermediate moves.