- S&P 500 Futures gains half a percent after declining to eight-day low the previous day.
- US Senate Majority Leader McConnell suggests voting on stimulus bill during this week.
- Germany offers good news for ex-China, Trump stays ready to debate despite new rules.
- Brexit, RBA are additional catalysts offering background music to ignore Wall Street losses.
S&P 500 Futures refrain from printing the sixth consecutive daily loss while picking up the bids near 3,440, up 20 points or 0.60% intraday, during the early Tuesday. The risk barometer recently benefited from increasing odds of the US coronavirus (COVID-19) stimulus while also paying attention to mildly positive Brexit headlines and updates for Asia.
Read: Wall Street Close: Bears take over as stimulus clock ticks down
Having earlier heard that US President Donald Trump is ready for a bigger relief package than House Speaker Nancy Pelosi’s proposal of $1.8 trillion, global markets got disappointed from US Congress updates suggesting a further delay in the much-awaited aid. Though, the latest comments from the Senate Majority Leader Mitch McConnell suggested that the House is likely to vote on the key issue during the week and hence odds of getting the plan increased.
Also favoring the mood could be the European Union’s (EU) readiness to negotiate the Brexit trade deal despite no solution of the key issues with the UK. This gives hope of breaking the Brexit deadlock. However, the British policymakers are strict this time and may create problems for the solution.
It should also be noted that the news from Germany, indicating further trade with Asia except China, offered additional optimism during the Asian session.
Furthermore, the recent positive US data, Friday’s Retail Sales and Monday’s NAHB home builder index, also favor the markets while being positive. The recently bearish statements from the RBA and the RBNZ also favor the equity derivative by the press time.
That said, Japan’s Nikkei 225 looks for fresh clues around 23,655 whereas the US 10-year Treasury yields remain positive near 0.77% as we write.
Traders may keep eyes on the People’s Bank of China’s (PBOC) rate decision for immediate direction while virus updates and news on the US stimulus will be the key to follow.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.