S&P 500 Futures: Mildly bid above 3,350 as US Congress will return to session NEWS | 12 minutes ago | By Anil Panchal

  • S&P 500 Futures defy Friday’s losses to stay near six month’s high.
  • US House Speaker Nancy Pelosi recall the session, hopes of stimulus discussion pick-up without saying.
  • Sino-American trade review meeting gets delayed, coronavirus tightens the grip.
  • Japan marks the worst GDP reading since 1980 before a policymaker signals measures to combat the pandemic.

S&P 500 Futures pick-up bids near 3,370 during the initial hour of Tokyo trading on Friday. The risk barometers recently gained from the news that the US Congress will reconvene later this week. Even so, the coronavirus (COVID-19) woes and the US-China tussle keeps the risk-on mood pressured. Also challenging the risk-takers are preliminary figures for Japan’s second quarter (Q2) Gross Domestic Product (GDP).

With an annualized contraction of 27.8% in April-June GDP, Japan marks its worst quarter since the data began in 1980. Following the outcome, Japanese Economy Minister Yasutoshi Nishimura crossed wires, via Reuters, while citing readiness to announce subsidies to back private consumption and employment.

Elsewhere, the US House Speaker Nancy Pelosi wrote lawmakers to return from their month-long vacations, called during the last week. While the agenda for the recall is to vote on legislation to protect the postal service, market players are quick to expect any clues relating to the much-awaited COVID-19 stimulus after the Senators left the discussion on Thursday.

Further, the latest data concerning the deadly virus is challenging the market sentiment as France stayed above 3,000 for the second day while Australia’s Victoria marks the highest death toll. Also acting as a risk-negative catalyst is the US-China tension that postponed Saturday’s bi-annual trade review without any dates by citing scheduling differences and wait for further agricultural buying from China.

In contrast to the US equity derivative, Japan’s Nikkei 225 drops 0.75% while stocks in Australia also mark losses to the same magnitude. Alternatively, New Zealand’s NZX 50 rise 1.0% following the postponement of the general election and rising concerns about the RBNZ’s rate cut in 2021.

Given the lack of major data/events on the calendar, market players will keep eyes on the risk catalysts like US stimulus, pandemic and US-China trade for fresh impetus.

Source from https://www.fxstreet.com/news/sp-500-futures-mildly-bid-above-3-350-as-us-congress-will-return-to-session-202008170104

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