S&P 500 Futures take bids, US Treasury yields ease amid stimulus optimism
|- S&P 500 Futures print four-day uptrend, refresh one-week top.
- US 10-year Treasury yields step back from three-month high.
- US House Speaker Pelosi teases infrastructure spending passage despite delaying vote to Thursday, US-China tensions ease after Huawei CFO release.
- US Durable Goods Orders, China’s Evergrande and US stimulus headlines are important for intraday moves.
Market sentiment improves during early Monday as hopes of US stimulus joins positive news concerning the coronavirus from Australia and Japan. Also favoring the mood were chatters surrounding the release of Huawei CFO and economic optimism, not to forget the fewer highlights over China’s Evergrande.
While portraying the mood, US 10-year Treasury yields ease from the highest since June, snapping a five-week uptrend, whereas the S&P 500 Futures rise for the fourth consecutive day to refresh one-week high, up 0.36% around 4,461 at the latest.
US House Speaker Nancy Pelosi steps back from her initial hints of Monday voting on the US infrastructure spending bill. However, her preference for Thursday and optimism towards passage seem to underpin the market’s risk-on mood. Further, the hopes that the US Democrats will use diplomatic power to rule out Republicans if they stick to their demands over the debt limit as it expires on October 01 also favor the sentiment.
Elsewhere, Japanese media announcement of removing all the virus-led emergencies this week and recently steady covid counts from Australia, not to forget hints of easing local lockdowns from early October, add to the market’s optimism.
Additionally, news that China and Canada did a prisoner swap during the weekend, resulting in the release of Meng Wanzhou, daughter of Huawei's founder and the CFO of the company, indirectly eased the tension between the US and China and favor the sentiment.
It should, however, be noted that the US Federal Reserve (Fed) officials remain in support of the tapering and the start of a rate hike, which in turn challenge the market bulls ahead of today’s US Durable Goods Orders for August.
Read: US Durable Goods Orders August Preview: Retail Sales have led the way
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.