- S&P 500 Futures barely avoid losses after two days of downside.
- US FDA panel backs usage of the Pfizer-BioNTech vaccine, official stamp awaited.
- Uncertainty over US stimulus, Brexit weigh on the risks amid a light calendar.
S&P 500 Futures recedes to 3,670, up 0.7% intraday, during the early Friday. In doing so, the risk barometer closely misses downward trajectory portrayed in the last two days.
Read: Forex Today: Markets are fragile in anticipation of political announcements
While the coronavirus (COVID-19) vaccine hopes back the trading sentiment off-late, fears of no-deal Brexit and a drag on the US covid aid package joins virus woes in the US to challenge the optimists. Also affecting the risks are chatters concerning the Sino-American and the Aussie-China tension.
A panel of experts voted in favor of the jointly developed covid vaccine by Pfizer and BioNTech during the early Asian session. The development opens the door for the US Food and Drug Administration’s (FDA) official approval to use the vaccine. The news should have ideally propelled the risks but is mostly priced in and hence the traders concentrate more on the record virus infections and the COVID-19 death toll in the US.
Read: Breaking: US FDA experts recommend Pfizer covid vaccine, risks remain positive
Also on the negative side is the lack of final decision on the much-awaited US stimulus package, despite an informal agreement over the total outlay of nearly $900 billion. Further, the UK’s contingency planning for no-deal Brexit and China’s dislike for Aussie goods, coupled with the readiness to respond to the Trump administration’s sanctions, also weigh the risks.
Against this backdrop, stocks in the Asia-Pacific trade mixed, with Japan’s Nikkei 225 and Australia’s ASX 200 printing mild losses by press time, whereas the US 10-year Treasury yields look for a clear signal near 0.91% after dropping over three basis points (bps) on Thursday.
Moving on, a lack of major data/events on the calendar during the Asian session requires the market players to keep their eyes on the risk catalysts for fresh impulse.
Share
