S&P 500 Futures gain half a percent towards 3,650 amid stimulus hopes
|- S&P 500 Futures regain upside momentum after the previous day’s consolidation.
- November became the heavy gainer, December moves depend upon virus vaccine, US stimulus.
- Fed Chair Powell, US Treasury Secretary Mnuchin marked need for aid package amid moderate economic momentum.
- Month-start activity numbers, updates concerning virus, stimulus will be important.
S&P 500 Futures pick-up the bids near 3,640, up 0.50% intraday, during the initial hour of Tokyo open on Tuesday. While the US dollar recovery, coupled with the risk-off mood, trimmed the risk barometer’s November gains on Monday, comments from the Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin renewed hope of the US coronavirus (COVID-19) stimulus and favored the equity derivative off-late.
Fed Chair Powell highlights the moderated economic recovery moves and likely challenges during the near future as points to back his testimony in front of the Senate Banking Committee, before going live during Tuesday’s US session. On the other hand, Treasury Secretary Mnuchin urged Congress to use $455 billion from the CARES Act to satisfy the stimulus need.
Following that the Dallas Federal Reserve Bank President Robert Kaplan backed the push towards the aid package while seeing "very difficult" next three to six months.
Elsewhere, Moderna conveyed a 94% effective rate for its covid vaccine while filling for the authorization as an emergency COVID-19 drug to the US Food and Drug Administration (FDA). Furthermore, Brexit woes and chatters surrounding the Western tension with China offer additional catalysts to watch.
Not only S&P 500 Futures but stocks in Asia-Pacific also print gains while eyeing China’s Caixin Manufacturing PMI for November and the RBA. As market consensus suggest both these events to not be the market movers, traders will pay more attention to headlines concerning the US aid package and virus vaccine for fresh impetus. It’s worth mentioning that the US ISM Manufacturing PMI can offer additional directions to the traders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.