S&P 500 Futures print mild losses above 3,600 as vaccine news-led optimism fades


  • S&P 500 Futures fail to keep the early Asian session’s positive tone.
  • Vaccine hopes take a back seat as Brexit jitters, Western tussle with China tame risk-on mood.
  • China PMIs couldn’t please the bulls as US President Trump blacklists few more companies from Beijing.
  • US traders’ return after Thanksgiving Day will be the key.

S&P 500 Futures print 0.25% intraday loss while easing to 3,628 during early Monday. The risk barometer benefited from the coronavirus (COVID-19) vaccine news earlier in the day but couldn’t withstand the uncertainty over Brexit and fears of a full-fledged trade/political war between the West and China.

US President Donald Trump adds China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to its blacklist of alleged Chinese military companies, per Reuters. The Trump administration earlier announced the blacklisting of four companies from Russia and Beijing concerning Iran’s missile program.

Not only the US but the UK and Australia are also sharing soured relations with the Asian major off-late. While the UK recently banned the new Huawei 5G kit installation from September 2021, Australia’s Trade Minister Simon Birmingham conveyed disappointment over China’s latest trade negative measures during the weekend.

It should also be noted that fears of further worsening in the global coronavirus (COVID-19) numbers ahead of the vaccine arrival join the Brexit jitters to tame the market’s optimism. Recently, covid figures from Texas and California have been worrisome while the news of the National Football League’s virus-led shutdown marked pandemic’s grip. On the other hand, the UK and the European Union (EU) continue to wrangle over the key hurdles despite suggesting that the deal is close.

On the positive side, pharmaceutical regulators from the US, Europe and the UK are up for approving the leading vaccines that have shown nearly 90% effective rates during the final rates. These come from Pfizer-BioNTech, Moderna and AstraZeneca. The news propels the hopes of early arrival of the much-awaited cure to the pandemic.

Additionally, China marked welcome figures for November month’s official NBS Manufacturing PMI and Non-Manufacturing PMI but couldn’t please the markets, except the Antipodeans.

Looking forward, the early-month activity numbers can entertain the global market players while the focus will be on the vaccine news and Brexit updates.

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