S&P 500 Futures ignore geopolitical challenges at Hong Kong, US amid broad risk-on mood

S&P 500 Futures print three-day winning streak to challenge the record high marked in February.
Wall Street benchmark flashed intraday record the previous day as US data keeps recovery momentum, Democrats compromise for stimulus.
Wildfires in California, a typhoon in Hong Kong join Sino-US headlines to question the optimists.
FOMC minutes will be the key, any hints for the American relief package can be welcomed with zeal.

Anil Panchal FXStreet

S&P 500 Futures take the bids near 3,392 amid the initial Tokyo trading on Wednesday. The risk barometer rises for the third day in a row following its U-turn from 3,350, flashed on Friday.

In doing so, the US equity derivative ignored the state of emergency in California while also paying a little heed to a typhoon in Hong Kong that stopped today’s floor trading in the Asian nation. Further, US President Donald Trump’s dislike for Beijing also gets ignored even as the Republican leader said he postponed talks and doesn’t want to negotiate with China, for now. Additionally, the latest rise in the coronavirus (COVID-19) cases from Germany and France also gets ignored.

The reason could be traced from the latest headlines suggesting the Sino-American assent to double the flights between the US and China. Also, US House Speaker Nancy Pelosi’s readiness to curtail the Democratic demand for breaking the stimulus deadlock favored the risk-tone sentiment. Furthermore, receding pandemic cases in Australia and New Zealand PM’s optimism also favor the risk-on sentiment.

Amid all these catalysts Japan’s Nikkei 225 rises 0.12% to 23,080 while Australia’s ASX 200 gain over 0.80% to attack 6,175 by the press time. Further, US 10-year Treasury yields continue to decline, at 0.66% now, which in turn weigh on the US dollar index (DXY) near fresh low since May 2018. It’s worth mentioning that the S&P 500 surged to record high near 3,390 during the previous day’s trading on Wall Street.

With the lack of major economics on the calendar ahead of the US FOMC minutes, market players will have to search for the headlines concerning trade war, virus and stimulus for fresh impetus.

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.

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