- S&P 500 Futures struggles to extend the early Asian gains.
- US President Biden’s vaccine optimism, hints for UK furlough extension and PBOC RRR cut probe previously sober mood.
- UK budget, chatters over US stimulus will be the key ahead of Powell and US NFP.
S&P 500 Futures seesaw around 3,870, up 0.10% intraday, during early Wednesday. In doing so, the risk barometer fades the early-Asian bullish bias amid a lack of major fundamental push.
Although cautious sentiment ahead of this week’s key events probed risks the previous day, comments from US President Joe Biden, earlier in Asia, brightened the mood. US President Biden cited coronavirus (COVID-19) vaccine partnerships with Johnson and Johnson, as well as Merck, while citing the US capacity to jab all American adults by May versus previously cheered July.
Elsewhere, the Financial Times (FT) conveyed hopes concerning the extension of the UK’s furlough scheme, coupled with benefits worth 20 billion pounds and favored the risks. Further, comments from the Aussie Treasurer Josh Frydenberg and Australia’s better than forecast Q4 GDP were also on the positive side. Additionally, signals from China suggesting the People’s Bank of China’s (PBOC) reserve requirement ratio (RRR) cut offered extra positives to the market.
However, nothing from farther could recall the bulls as traders fear the covid variants and reflation chatters ahead of Fed Chair Powell’s speech on Thursday as well as the US employment figures, up for publishing on Friday. For an immediate direction, today’s UK budget and the US ISM Services PMI for February could become important.
Given the likeliness of Powell’s rejection of the reflation fears and upbeat US NFP, not to forget the positive UK budget, the risk tone should regain upward trajectory and CAN favor the bulls in the coming days. It’s worth mentioning that US President Joe Biden’s $1.9 trillion stimulus is looming in the Senate and any clear announcement relating to the same will also be the key to watch.
Read: Wall Street Close: Stocks slip amid profit taking ahead of key risk events later this week
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