- S&P 500 Futures extend the previous day’s losses, stays below 3,550.
- Biden’s readiness for healthcare boost, vaccine hopes combat Trump’s efforts to keep the White House.
- A light calendar adds to the boredom during the US Veterans Day holiday.
S&P 500 Futures remains pressured below 3,550, currently down 0.15% intraday to 3,535, during the initial hour of Tokyo open. Although recently fading vaccine hope and political headlines from the US challenge the market sentiment, off in the US joins a light calendar, coupled with the American President-elect Joe Biden’s upbeat comments, to portray lack of activity in the market.
In addition to suggesting ramp-up healthcare efforts from January, Biden recently tweeted the return of America in the game while trying to motivate the US voters that chose him. While the Democrats have always been market favorite due to their stimulus-friendly nature, comments like this confirm the much-awaited wave of the money supply. Also on the positive side could be the hopes that the Democratic Party’s victory in the US will improve the world’s largest economy’s trade relations with Europe and China.
Even so, Europe’s latest tariffs and the American sanctions on Chinese diplomats over the Hong Kong crackdown challenge the trade optimism. Further challenging the mood is the halt in China’s coronavirus (COVID-19) vaccine trials in Brazil due to the death of a volunteer.
It should, however, be noted that stocks in Asia remain positive as Nikkei 225, ASX 200 and NZX 50 all three flashing over 1.0% gains by press time.
Given the lack of major data/events, coupled with an absence of the US traders from the Treasury floor, the market’s trading sentiment are likely to continue their recent cautious optimism. However, Trump’s multiple lawsuits to challenge the 2020 US presidential election results may offer intermediate moves and can probe the risk-on mood.
Read: Wall Street Close: Investors back cyclical stocks, benchmarks dip
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