- 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.
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.