S&P 500 Futures snap three-day downtrend despite boring Trump-Biden talks

  • S&P 500 Futures add 11 points, or 0.30%, to extend bounces off 3,431.88 marked the previous day.
  • Calls for further stimulus from Japan, US policymakers’ efforts to placate bears offer market consolidation amid a light calendar.
  • Risk catalysts remain as the key driver, US consumer-centric figures will also entertain traders.

S&P 500 Futures rise to 3,486, up 0.30% intraday, during early Friday. In doing so, the risk barometer prints gain for the first time in the last three days even as global markets haven’t overcome the ingrained fears. The risk gauge dropped during the previous three days amid fears of no US stimulus as well as acceleration in the coronavirus (COVID-19) wave 2.0. Also weighing the risks were fears of no-deal Brexit as no clarity over future talks have been given beyond the previously claimed October 15 deadline.

However, US President Donald Trump recently tried to placate bears during the “town hall” talks while suggesting that House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin “going to go" over the relief bill. Late Thursday, Speaker Pelosi also mentioned that Stimulus relief will not wait until January.

Further, Japanese media rolled out news of stimulus even at the cost of emergency budget funds while also ruling out favoring the Trump administration’s move to stop Chinese telecommunication companies on many horizons. Elsewhere, German Chancellor Angela Merkel also cited “constructive and intensive” Brexit talks in the EU summit after the previously cheered final date of talks expired without much noise.

It’s worth mentioning that the question and answer session of US President Donald Trump and Presidential Candidate Joe Biden couldn’t gain much of the audience. Trump was mostly stopped by NBC anchor and tried to regain the market controls whereas Biden seemed to won the appearance with mild response and readiness to make vaccine compulsory.

Read: Trump & Biden do little to impress during dueling town halls

Against this backdrop, Japan’s Nikkei 225 reverses early-day losses to mark 0.10% gains at 23,527 whereas stocks in China are also mildly bid. However, equities in Australia and New Zealand remain pressured amid a fresh Aussie-China tussle that called for Beijing’s ban on Aussie cotton after stopping coals earlier in the week.

With a lack of major data/events on the calendar, traders will keep eyes on the risk catalysts ahead of the American session carrying September month’s Retail Sales and Michigan Consumer Confidence for October.

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