S&P 500 Futures cheer US Pres. Trump’s coronavirus recovery news

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.

Anil Panchal FXStreet

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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.