S&P 500 Futures print three-day winning streak to aim for 3,300

S&P 500 Futures stay bid around 3,298, up 0.35% intraday, during the initial hour Tokyo open on Monday. In doing so, the risk barometer keeps the recovery moves from the late July lows amid hopes of the US stimulus and a pause to the Sino-American, for now. However, the coronavirus (COVID-19) woes, coupled with the fears of hard Brexit, question optimists.

The US District Court of Columbia granted a nationwide preliminary injunction against the Trump administration’s previous order to ban TikTok downloads starting from September 28. The news pushes Global Times Editor Hu Xijin to welcome the ruling while also tweeting, “the US government is in a hysterical state and can hardly be calmed down with a sedative.”

Also acting as a market positive could be the weekend comments from US House Speaker Nancy Pelosi who cited Democratic preparations for another package to renew hopes of American stimulus to combat the coronavirus (COVID-19). Furthermore, Confederation of British Industry (CBI) head Carolyn Fairbairn is optimistic about the Brexit trade deal ahead of the ninth round of talks while Irish Taoiseach Micheál Martin stands on the other end. Additionally, the upbeat results of Johnson and Johnson’s fourth trail of the virus vaccine also help to build the market mood.

Talking about risk-negative headlines, the COVID-19 resurgence in the UK and Europe is turning wild off-late and is pushing the British government to prepare for strict national restrictions over socializing.  Also joining the line are the light calendar and uncertainty over the US Election, up from November 03, wherein both the leading contestants, namely the current President Donald Trump and Joe Biden, have a small margin over the chances of victory.

Other than the S&P 500 Futures, stocks in Asia-Pacific and the US 10-year Treasury yields also portray mildly risk-on sentiment.

Looking forward, China is on holiday and the economic calendar doesn’t carry any major data/events, which in turn can keep the global markets mostly choppy. However, the US dollar may remain on the upper hand unless any risk-positive news erupts.