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  • S&P 500 Futures trim early-Asian losses while bouncing off 3,570.
  • The risk barometer refreshed an all-time high to 3,586.36 on Wednesday.
  • Hopes of further stimulus, upbeat data from China keep buyers in control, Sino-American tension questions the bulls.

S&P 500 Futures keep 3,600 on the table while picking up the bids near 3,580 during the early Thursday. The risk barometer marked another record high the previous day while cheering the odds of further monetary-fiscal easing from global superpowers. Also adding to the market optimism could be the coronavirus (COVID-19) vaccine hopes. Even so, the US-China tussle keeps challenging the optimists.

Be it the dovish comments from policymakers of the Fed, BOE, BOJ and RBNZ, or statements from the Trump administration suggesting nearness to the much-awaited COVD-19 aid package, equity buyers are cheering everything. Also supporting the expectations of further easing is the upcoming Japanese PM elections, on September 14, that previously endangered Abenomics.

Furthermore, the global rush to virus vaccine is reaching the phase with the leader in research, AstraZeneca, taking the last round of trials. Also, 76 wealthy countries, excluding the US, have formed a group called COVAX (COVID-19 Vaccines Global Access), to develop, manufacture and distribute a vaccine to cure coronavirus and distribute it evenly. Also considered positive could be the latest release of Chinese Caixin PMI that grew past-50.4 forecast to 54.00.

On the contrary, the Chinese embassy warned the US after it announced further sanctions on its diplomats on Wednesday. The world’s top two economies have been at loggerheads for a long time, which in turn defies odds of the much-awaited phase one trade deal. The same add to the economic woes when the pandemic has already holed into the global activities.

Against this backdrop, Japan’s Nikkei 225 and Australia’s ASX 200 rise over 1.0% while Chinese equities struggle for a clear direction with mild gains as we write.

Looking forwards, traders will pay a little heed to the news, unless being active, ahead of today’s key US ISM Services PMI and Friday’s American jobs report for August. While forecasts are suggesting challenges to the US dollar’s latest recovery moves, positive surprises will provide an extra boost to the market’s risk-tone sentiment.

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