- S&P 500 Futures regain 3,350, up 0.80% intraday, after declining on Friday.
- US President Trump tweets a video with upbeat tone, had a short-term drive outside Walter Reed.
- Fears of dexamethasone usage, virus updates from Europe and UK probe the bulls.
S&P 500 Futures takes the bids near 3,365, up 0.77% on a day, during Monday’s Asian session. In doing so, the risk barometer defies Friday’s downbeat performance after US President Donald Trump and his wife Melania got coronavirus (COVID-19) infected.
However, the latest updates from the US suggest that President Trump is recovering from the virus-led illness and hasn’t shown any sign of danger. To prove that, the Republican leader tweeted a video of himself and also took a round of Walter Reed to thank well-wishers. Further to convey Trump’s love for the American economy, updates suggest that the national leader spoke to US Treasury Secretary Steve Mnuchin over the weekend for the COVID-19 stimulus.
Elsewhere, the weekend meeting between the UK PM Boris Johnson and EU Commission President Ursula von der Leyen offers fresh hopes of a soft Brexit, Further, updates suggesting a sooner end to the deadlock over the US aid package talks also favor the risk-tone sentiment.
On the contrary, usage of dexamethasone in President Trump’s treatment and fears of fresh lockdown restrictions in Britain and Europe question the market optimists. It’s worth mentioning that the absence of Chinese players and a light calendar also tame the market’s positive mood.
Other than the upbeat prints of S&P 500 Futures, 1.5 basis points (bps) of gains by the US 10-year Treasury yields and over 2.0% gains of Australia’s ASX 200, coupled with a 1.24% rise by Japan’s Nikkei 225, also portray traders’ upbeat sentiment.
Looking forward, news concerning the American President’s health will be the key ahead of the US ISM Services PMI for September, expected 56.0. Also important will be Brexit headlines and European Retail Sales.
Read: The S&P 500 Weekly Forecast: Bulls may struggle below 3,400s, eyes on the rising bearish wedge
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.