S&P 500 Futures remain firm around mid-3,400s as US aid package talks intensify

  • S&P 500 Futures keep the previous day’s recovery moves amid stimulus hopes.
  • Pelosi terms latest talks offering more clarity but McConnell probes expectations of early stimulus.
  • Virus woes in Europe, allegations on the US President Donald Trump, Washington-Pyongyang tussle offer background music to the risks.

S&P 500 Futures ease from the intraday high around 3,450 to 3,446 during early Wednesday. Even so, the risk barometer prints a 0.40% gain on a day while cheering progress over the US coronavirus (COVID-19) stimulus talks.

US House Speaker Nancy Pelosi praised the latest round of relief package talks with Treasury Secretary Steve Mnuchin after both the policymakers missed the Tuesday-night deadline to have a deal. The Pelosi-Mnuchin discussions are up for a restart on Wednesday when Treasury Secretary Mnuchin returns from his Middle East trip.

It should, however, be noted that the Senate Majority Leader Mitch McConnell was recently spotted by CNBC’s Carl Quintanilla, via a tweet, while saying, “Mr. McConnell’s remarks, confirmed by four Republicans familiar with them, threw cold water on Mr. Trump’s increasingly urgent push to enact a new round of pandemic aid before Election Day.”

Other than the stimulus talks, COVID-19 problems in Europe and the UK join the latest likely tension between the US and North Korea to challenge the risk-tone. Spain is near to emergency while the UK also fails to cheer any positive results from the “Three Tier” lockdowns as global counts cross 40 million.

Against this backdrop, the US 10-year Treasury yields rise past-0.80% whereas stocks in Asia-Pacific print mild gains based on the stimulus hopes.

Looking forward, considering a light calendar, the equity derivative may track Wall Street’s performance while paying major attention to the US relief package negotiations.

Read: Wall Street Close: Bulls pull-out at last hour, benchmarks end off their highs

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