S&P 500 Futures gain half a percent towards 3,800 as markets brace for Biden welcome

S&P 500 Futures extend Monday’s recovery moves amid a quiet Asian session.
Yellen’s prepared remarks for Tuesday’s Senate speech favor Biden’s stimulus.
Virus woes recede amid vaccine optimism, light calendar tames market moves.

Anil Panchal FXStreet

S&P 500 Futures probe the intraday high while taking the bids near 3,783 during early Tuesday. The risk barometer rises for the second consecutive day as global markets prepare for a good welcome party for US President-elect Joe Biden and company, maybe due to his fiscal relief goals. Also favoring the tone could be an absence of major negatives from the economic calendar and the coronavirus (COVID-19) front.

While fears of the widening budget deficit and the Fed’s uneasy face initially raised doubts on the Biden’s $1.9 trillion stimulus, recently published prepared comments from Janet Yellen, to be US Treasury Secretary, favored the move while citing the record low-interest rates. The ex-Fed Chair is up for her first Senate speech as the incoming Biden official on Tuesday.

It should be noted that US President Donald Trump’s easing of travel restrictions from Europe and Brazil, likely to be challenged by Biden and Company, also favored the risks.

On the contrary, China reports an increase of nine covid cases while the number of people hospitalized for covid-19 up for the second day at 25,584, more than one month high. It should be noted that the virus-led restrictions in the UK, Japan and the US are likely to weigh on the upcoming economics and challenge the risk-on mood.

Amid these plays, stocks in Japan and Australia gain over 1.0% while the US 10-year Treasury yields stay positive around 1.10% by press time.

Looking forward, Yellen’s speech will be the key for markets ahead of Wednesday’s inaugural ceremony of US President-elect Joe Biden. Also important will be tomorrow’s monetary policy meeting by the ECB.

Also read: AUD/USD: Risk-on mood, upbeat second-tier Aussie data back bulls attacking 0.7700

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.

GBP/USD remains in two-day highs around 1.3260

GBP/USD adds to Friday’s bounce, gathering fresh traction and flirting with the 1.3270 zone on Monday, or two-day tops. Cable’s decent advance comes despite the move higher in the Greenback and investors’ assessing of UK PM K. Starmer's resignation.

EUR/USD remains close to three-month lows near 1.1450

EUR/USD sets aside Friday’s bounce and trades with modest losses in the mid-1.1400s at the beginning of the week. The continuation of the bid bias in the US Dollar continues to weigh on spot despite improving sentiment from the geopolitical front.

Gold bounces off lows, looks to surpass $4,200

Gold regains composure and leaves behind three-consecutive daily declines on Monday, looking to regain the area above the $4,200 mark per troy ounce. Reports of progress in the latest round of US-Iran talks are helping the precious metal maintain its footing at the start of the week, although the stronger Greenback seems to limit the upside potential for now.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

Is Shiba Inu dead or just in a crisis? The data behind SHIB's 95% crash

SHIB, the dog-themed meme coin that became one of the biggest success stories in crypto and turned early buyers into crypto millionaires, is facing tough times. Its price has fallen more than 32% so far this year, and it is down 95% from its all-time high in 2021. Is SHIB simply another fading meme coin, or is the market overlooking a possible recovery story?

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.