S&P 500 Futures looks to regain 3,600 as US GSA begins Biden transition

S&P 500 Futures gains half a percent in a fresh bid wave, Wall Street also marked upbeat performance in the last hours.
Trump concedes defeat while ordering the GSA to start the transition.
Odds that ex-Fed Chair Yellen will become Treasury Secretary, vaccine hopes and Brexit optimism also favor the bulls.

Anil Panchal FXStreet

S&P 500 Futures rises over 18 points, or 0.52% intraday, ahead of Tuesday’s Tokyo open. The US equity derivatives recently gained support from the news that US President Donald Trump finally accepted his defeat and ordered the General Services Administration to begin the power shifting to President-elect Joe Biden.

Read: US GSA: President-elect Joe Biden can formally begin transition process

Other than the transition headlines, chatters concerning Janet Yellen’s return to the US policy board, this time as a Treasury Secretary, earlier favored markets during the last hours of Wall Street’s moves. Yellen has successfully battled slowdown fears while being in power at the Fed and is expected to help the US overcome the coronavirus (COVID-19) crisis if chosen for the stated role, as indicated by CNN.

Further, increasing odds of the soft Brexit and further developments surrounding the covid vaccine are certain other catalysts that favor the market’s risk-on mood. Additionally, upbeat prints of the US PMIs for November offer extra support to the optimists.

On the contrary, signals that the US is forming a Western alliance to combat the China-led trade group join the fear of rising COVID-19 hospitalization in America to challenge the bulls.

Looking forward, comments from BOJ and the Federal Reserve policymakers can entertain market players amid a light calendar. However, any updates from US politics and/or virus will be the key to watch.

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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