S&P 500 Futures stays mildly positive above 3,400 as US VP Debate kicks off
- S&P 500 Futures keeps the previous day’s upside momentum beyond intraday low around 3,407.
- Trump tried to keep the bulls happy with the vaccine, stimulus hopes.
- Japan to remove travel from 12 countries, BOJ’s Kuroda holds a mild optimistic view.
- China’s return from Golden Week holidays, Pence’s ability to praise Trump administration will be the key.
S&P 500 Futures add over 5 points, up 0.16% intraday, to 3,412 amid the initial hour of Thursday’s Tokyo open. The risk barometer remains positive for the second consecutive day as US Vice Presidential Debate begins between the current Vice President (VP) Mike Pence and Democrats’ proposed candidate Senator Kamala Harris.
Follow: VP debate could raise chances of a contested election and weigh on markets – Live coverage
Although Mike Pence is widely anticipated to dominate in today’s VP faceoff, traders remain cautious considering the recent increase in Democratic polls.
To pave a good start to the Asian day, US President Donald Trump rekindled his health recovery while also suggesting the coronavirus (COVID-19) vaccine to arrive just after the election. The Republican leader availed the opportunity to blame opposition politics in delaying the much-needed cure to the pandemic.
On the same line, White House Chief of Staff Mark Meadows said that Trump is ready to consider a Democratic counteroffer if House Speaker Nancy Pelosi respects the Republican stand.
It should be noted that Japan’s removal of the travel ban from 12 countries, including China, jostles with downbeat comments from RBNZ while the BOJ Governor Kuroda is optimistic about economic rebound.
Other than the S&P 500 Futures, Japan’s Nikkei 225 also prints mild gains but stocks in Australia and New Zealand rise notably amid hopes of further stimulus from the RBA and the RBNZ respectively.
Moving on, developments in the debate will be closely observed together with Chinese traders’ reactions, as they are back from a one-week long off. In a case where Pence start losing the game, challenges to the risk-on mood are likely to pop-up.