S&P 500 Futures print mild gains amid quiet session in Asia

• S&P 500 Futures catch a breather after the biggest run-up in a month.
• Stimulus, vaccine optimism joins upbeat data to favor the bulls.
• Fears of covid variant from Brazil, US-China and Washington-Tehran tussles test the bulls.
• US virus relief package, UK budget headlines will be key, Treasury yields moves should be observed too.

S&P 500 Futures hold 3,900, currently around 0.13% to 3,904, during Tuesday’s Asian session. The risk barometer marked a stellar run-up the previous day market sentiment improved over the hopes of a faster recovery from the coronavirus (COVID-19) pandemic.

Although policymakers in the US and the UK are ready to provide the much-awaited fiscal relief measures, the final announcement is yet to be unveiled, which in turn probes the risk-on mood recently.

Also challenging the sentiment could be the fears of the Brazilian variant of the COVID-19 as well as readiness to keep the pressure on China by US President Joe Biden’s pick for the US Trade Representative (USTR) Katherine Tai.

Furthermore, the US is rolling its sleeves for fresh sanctions on Russia and challenges the market mood amid a dull day. “The United States is expected to impose sanctions to punish Russia for the poisoning of Kremlin critic Alexi Navalny as early as Tuesday, two sources familiar with the matter said on Monday,” said Reuters.

Amid these plays, US 10-year Treasury yields stay depressed above 1.40%, currently down 2.4 basis points to 1.42%, whereas stocks in Asia-Pacific also await fresh clues while keeping the previous day’s upbeat performance.

Looking forward, the RBA monetary policy meeting, German Retail Sales and Canadian GDP are likely to decorate the calendar. However, major attention will be given to updates concerning the American and the British covid stimulus updates and virus news.

Also read: Wall Street Close: Stocks surge as focus returns to positive stimulus, pandemic news