S&P 500: Futures bounce as China’s return welcome vaccine news amid virus woes

  • S&P 500 prints another recovery moves from below 3,000 area.
  • China’s Sinopharm Group spreads upbeat news concerning the pandemic’s cure during the weekend.
  • Worsening virus conditions in the US, China and Japan earlier weighed on the market’s risk-tone.

S&P 500 Futures take the bids near 3,012, up 0.20% on a day, amid the initial Tokyo session on Monday. The risk gauge recently bounced as China’s return from holidays cheered news concerning the coronavirus (COVID-19) cure from the Asian major’s drug manufacturer. However, the risk-on mood remains confined amid surging numbers from the key global economies, coupled with the trade war and geopolitical tension.

During the weekend, China’s Sinopharm Group mentioned that its second vaccine has been found to be safe and able to generate a high concentration of antibodies among participants in phase I and II clinical trials. On the contrary, China’s Anxin County was recently pushed under the strict lockdown measures like Wuhan experienced at the start of the pandemic.

Updates form the US have been worrisome as Texas marked the seventh day whereas the disease figures have been above 5,000 whereas Los Angeles County printed near-record surge in the cases by 2,542 to the total of 97,894 by Sunday. Further, California marked an increase of 4,810 cases to 21,243 total.

It’s worth mentioning that Tokyo registered an additional 60 cases during Sunday. This becomes the highest figure from Japan’s capital since the state of emergency was ended on May 25.

Other than the virus woes, geopolitical tussles between India and China, as well as the US-Iran tension, also weigh on the market’s risk-tone sentiment. Additionally, trade-negative measures from the US renew the fears of trade wars and offer an additional burden on the trading sentiment. While also portraying the market mood, other than the S&P 500 Futures, the US 10-year treasury yields seesaw around 0.64% whereas Japan’s Nikkei and Australia’s ASX 200 recede from the early-day lows.

Moving on, global market players may keep eyes on the risk-catalysts, mainly the virus updates for fresh impulse during the Asian session. Though, the start of the EU-UK Brexit talks and US data might entertain the traders during the later part of the day.

Posted in FX