S&P 500 Futures retrace five-day losing streak above 3,400
- S&P 500 Futures gains half a percent after declining to eight-day low the previous day.
- US Senate Majority Leader McConnell suggests voting on stimulus bill during this week.
- Germany offers good news for ex-China, Trump stays ready to debate despite new rules.
- Brexit, RBA are additional catalysts offering background music to ignore Wall Street losses.
S&P 500 Futures refrain from printing the sixth consecutive daily loss while picking up the bids near 3,440, up 20 points or 0.60% intraday, during the early Tuesday. The risk barometer recently benefited from increasing odds of the US coronavirus (COVID-19) stimulus while also paying attention to mildly positive Brexit headlines and updates for Asia.
Read: Wall Street Close: Bears take over as stimulus clock ticks down
Having earlier heard that US President Donald Trump is ready for a bigger relief package than House Speaker Nancy Pelosi’s proposal of $1.8 trillion, global markets got disappointed from US Congress updates suggesting a further delay in the much-awaited aid. Though, the latest comments from the Senate Majority Leader Mitch McConnell suggested that the House is likely to vote on the key issue during the week and hence odds of getting the plan increased.
Also favoring the mood could be the European Union’s (EU) readiness to negotiate the Brexit trade deal despite no solution of the key issues with the UK. This gives hope of breaking the Brexit deadlock. However, the British policymakers are strict this time and may create problems for the solution.
It should also be noted that the news from Germany, indicating further trade with Asia except China, offered additional optimism during the Asian session.
Furthermore, the recent positive US data, Friday’s Retail Sales and Monday’s NAHB home builder index, also favor the markets while being positive. The recently bearish statements from the RBA and the RBNZ also favor the equity derivative by the press time.
That said, Japan’s Nikkei 225 looks for fresh clues around 23,655 whereas the US 10-year Treasury yields remain positive near 0.77% as we write.
Traders may keep eyes on the People’s Bank of China’s (PBOC) rate decision for immediate direction while virus updates and news on the US stimulus will be the key to follow.