- S&P 500 Futures seesaw in small profit zone after two-day losses.
- Hopes from US President Biden’s infrastructure plan favor risk-on mood, likely US-Iran talks and vaccine optimism also back the sentiment.
- China-West discomfort and virus woes seem to probe the market optimism ahead of the key data/events.
S&P 500 Futures waver around 3,952, up 0.12% intraday, during Wednesday’s Asian session. In doing so, the risk barometer snaps a two-day losing streak amid hopes of no tax hike in US President Joe Biden’s multibillion-dollar infrastructure spending plan. Additionally, Reuters’ news suggesting the US readiness to restart the nuclear deal talks with Iran also supports the recent consolidation of the previous risk-off mood.
However, headlines suggesting China’s Yunnan province instructs residents in the urban area of Ruili city should remain at home for a week following new covid-19 cases join the European and Aussie virus woes to weigh on the sentiment. Also on the negative side could be the UK’s push to get tough on China as well as the United Nations (UN) inaction over North Korea’s missile testing.
It should, however, be noted that US President Biden’s push for faster vaccinations and the UK’s easing of the COVID-19 activity restrictions join record jabbing in Britain to keep the markets hopeful of faster economic recovery. Also, China’s strong activity data for March suggests the better days are just ahead.
Amid these plays, stocks in Asia-Pacific trade mixed while the US 10-year Treasury yield stays firm around the highest since January 2020, flashed the previous day, by the press time.
Given the scheduled release of US ADP Employment Change and President Biden’s Infrastructure Plan, traders are likely to stay cautious. Should Biden pleases the markets, the US dollar may step back from its multi-day top and the equities can refresh record tops marked in March.
Also read: Wall Street Close: Stocks subdued ahead of key risk events later in the week
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