S&P 500 Futures wobble around 3,700 as US stimulus news combat Brexit, virus woes

S&P 500 Futures snap four-day winning streak despite intermittent bounces on the US stimulus news.
US policymakers near to announcing official details of covid aid package, passed one-day stopgap funding.
Brexit extension chatters come back to the life, new variants of covid pushes Europe, Turkey and Canada to stop UK travels.

Anil Panchal FXStreet

S&P 500 Futures mark a volatile session during Monday’s Asian hours. The chatters over the final version of the US coronavirus (COVID-19) stimulus bill join the passage of a one-day stopgap funding to keep the risks afloat despite fears of the outbreak of a new covid variant from the UK. Also challenging the market sentiment could be the fears of an extension to the Brexit deal talks as the European Union (EU) and the UK aren’t yet final over the deal.

Although Capitol Hill asked one more day to finish writing and vote on the $1.4 trillion omnibus and the $900 billion COVID-19 relief bill, passage of a one-day stopgap funding keeps the risks mildly positive. The mood also favors the US dollar to extend its bounce off April 2018 low marked last Thursday.

Elsewhere, EU Chairman of the Foreign Affairs Committee David Callister mentioned in a tweet that the European Parliament will not be in a position to grant consent to an agreement this year. The differences over fisheries and level playing field could be heard in the latest chatters.

It should also be noted that Canada recently joined a few of the European countries and Turkey to suspend flights with the UK to avoid witnessing a new variant of the virus.

Amid these plays, stocks in Asia-Pacific remain mostly downbeat, except for China, whereas the US 10-year Treasury yields drop two basis points to attack 0.90%.

Looking forward, Brexit and the covid headlines can entertain the market players during the early European session while the US policymakers’ update on the aid package will be in the spotlight afterward.

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.

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