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S&P 500 Futures keep mild gains above 3,300 as news from US, Brussels fan market optimism

  • S&P 500 Futures print four-day winning streak, surge the most in three weeks the previous day.
  • Brexit hopes, expectations of US stimulus keep trading sentiment positive.
  • Light calendar restricts major moves ahead of EU-UK talks in Brussels, US Presidential Election debate also be the key.

S&P 500 Futures rises to 3,357.40, up 0.33% intraday, amid the initial hour of Tokyo open on Tuesday. In doing so, the risk barometer stays positive after Monday’s upbeat performance amid risk-positive headlines from America and the European Union (EU). Also favoring the market sentiment could be hopes of the coronavirus (COVID-19) vaccine.

With the US Democrats’ readiness to alter previous proposals, the deadlock over the much-awaited stimulus talks seems to break anytime. US House Speaker Nancy Pelosi recently said, "We have been able to make critical additions and reduce the cost of the bill by shortening the time covered for now." On the other hand, US Treasury Secretary Steve Mnuchin is also pushing harder to not fall for any longer brakes on the aid package.

In addition to the American Congress, the European Central Bank (ECB) is also signaling further stimulus. In her latest speech, the ECB President Christine Lagarde showed preparedness “ready to adjust all of its instruments, as appropriate” to combat the COVID-19 resurgence that threatens an economic recovery from lockdowns.

On the other hand, The Times came out with the news suggesting that the EU policymakers are ready to put their guns down and rewrite the legal agreement ahead of today’s ninth round of Brexit talks in Brussels.

It should also be noted that stocks in Australia remain firm whereas Japan’s Nikkei bears the burden of downbeat inflation data. Elsewhere, the US 10-year Treasury yields also remain mostly sideways around 0.65%.

Moving on, market players will keep eyes on a slew of Fed policymakers’ speeches up for crossing wires during the North American Session. Though, the first round of debate for the Presidential Election 2020 gains all the market attention.

Author

Anil Panchal

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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