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.
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.
