S&P 500 Futures print mild losses as US stimulus gridlock battles upbeat vaccine updates

S&P 500 Futures probe intraday low as risks heavy in Asia amid a quiet session.
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Anil Panchal FXStreet

S&P 500 Futures drop to 3,642, down 0.15% intraday, on Tuesday’s Asian session. In doing so, the risk barometer defies the previous day’s slightly positive performance, mainly backed by the coronavirus (COVID-19) vaccine news, amid uncertainty over the US covid aid package.

The latest updates from the leading COVID-19 vaccine producers like AstraZeneca and Moderna suggest the virus variants from the UK and South Africa can be tackled. Also on the same line was the news from Israel’s Maccabi Health Services signaling strong health recovery due to the virus vaccines.

Read: Covid-19 Vaccine Update: Moderna vaccine effective against UK, SA strains and promising Israeli data

Also on the positive side were covid updates from the UK and the US suggesting relief from the previously high death toll and infection rates. However, the recent data from China, per the Global Times, indicating the North East (NE) China's Heilongjiang reported 53 confirmed and 24 asymptomatic cases on Monday, with the majority of them coming from Wangkui county.

On the other hand, US Senate Majority Leader Chuck Schumer raised doubts over the swift approval of President Joe Biden’s $1.9 trillion coronavirus aid package. “Will try to pass stimulus in a month, month-and-a-half,” said the Congress member.

It should be noted that the impeachment case for ex-President Donald Trump is escalating to the Senate and is also weighing on the risk.

Read: Trump, former president, formally on trialtrial to begin week of Feb 8

Amid all these plays, the US 10-year Treasury yields pause the previous day’s downside around 1.04% whereas stocks in Asia-Pacific trade mixed with Japan’s Nikkei 225 crossing roads to mildly bid ASX 200 and NZX 50.

Looking forward, global traders may witness a lack of momentum amid cautious sentiment before Wednesday’s monetary policy meeting of the US Federal Reserve. Though, positive surprise on the US stimulus and/or virus/vaccine can help improve the market mood.

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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