S&P 500 Futures probe record top above 3,700 with eyes on Capitol Hill
- S&P 500 Futures print three-day winning streak as US policymakers return to Capitol building from safe passage.
- Chatters over Congress members are discussing Trump’s impeachment, Electoral College votes entertain markets following Democrat Jon Ossoff’s victory.
- Certification of Democratic Party’s Senate power, Japanese PM Suga’s emergency announcement and virus woes will be the key.
S&P 500 Futures pick up bids near 3,763, up 0.65% intraday, during early Thursday. The risk barometer jumped to the record top the previous day and is currently positive as global markets cheer increasing odds of Democratic leadership in the US Senate.
Although a mod attack on the Capitol building required US policymakers to take a break from the Electoral College vote, their return to the building, which is not a good shape, keep the risks positive. While Republicans aren’t openly opposing the latest incident in the US political history, they have stopped favoring President Donald Trump and curtailed barriers for Democrats’ arrival to the Senate.
Other than the drama by Mr. Trump's so-called fans, Jon Ossoff’s victory in the Georgian election also favors the risks as Democrats are an inch away from taking powers in both the US houses.
Elsewhere, leaks from the UK’s National Health Services (NHS), quoted by HSJ, suggest fears of flooding of the coronavirus (COVID-19) patients in Britain while Japanese PM Yoshihide Suga is up for a speech concerning emergency in Tokyo and three surrounding areas. Also, Australia changes travel guidelines to the US while readying the vaccinations for next month.
It should be noted that the global ire against China heats after the World Health Organization (WHO) highlighted Beijing's reluctance in cooperating during the covid trace investigations. Further, the detention of Hong Kong activists and the US executive orders on eight Chinese applications are extra catalysts indicating further hardships for the Asian major.
Even so, stocks in Asia-Pacific follow US stock futures and the 10-year treasury yields while pleasing the bulls by the press time.
Moving on, global traders will be more concerned with how the Democrats gain the Senate and any hints of further US-China tussle as well as Japan’s covid emergencies. Also important will be the UK’s virus woes and the pre-NFP mood. Though, markets are likely to remain active for now.
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.
