S&P 500 Futures rise for fourth week despite recent pullback to 3,385

• S&P 500 Futures step back from 3,393.38 to mark one more reversal below 3,400.
• Mixed coronavirus updates, hopes of US-China trade deal talks and Washington-Tehran tussle direct market sentiment.
• US House Speaker Nancy Pelosi derailed stimulus hopes, scheduled data prints positive economic picture.
• Preliminary PMIs will be in focus, risk catalysts to keep the driver’s seat.

S&P 500 Futures remains mildly bid around 3,385, up 0.18% on a day, even after the latest drop from 3,393.38 during the early Friday. While Wall Street’s positive performance and hopes of US-China trade talks favored the risk barometer’s initial rise, the latest weakness could be attributed to the mixed updates concerning the coronavirus (COVID-19).

Although Australia’s Victoria marked a five-week low of new cases, with 179 figures, numbers from New Zealand and Tokyo have been worrisome. While New Zealand marked an increase in cases from 5 to 11, Tokyo’s numbers topped the 300 mark for the first time since Saturday at 339 level. Furthermore, Mainland China marked an increase in cases from 7 to 22. However, the dragon nation marks the fifth day of zero local cases.

On the other hand, US Secretary of State Mike Pompeo said the US will do everything it can do to enforce the United Nations (UN) Iran arms embargo. However, there hasn’t been any response from either China or Russia that earlier saved the Arab nation and despite getting warnings from the Trump administration official. Alternatively, Chinese officials suggest the Sino-American trade talks will resume soon.

Furthermore, US House Speaker Nancy Pelosi takes a U-turn from her earlier stand to favor a small amount of relief package and renewing hopes of the US stimulus talks. The Democrat said, “Timing is not right for a smaller coronavirus relief bill.”

It should also be noted that the scheduled data from Australia and Japan have so far been positive and helps the risk-tone sentiment to remain mildly upbeat. The numbers include preliminary readings of the Commonwealth Bank of Australia’s Manufacturing PMI and Jibun Bank Manufacturing PMI for Japan as well as Aussie Retail Sales.

Amid all these catalysts, stocks in Asia-Pacific remain mildly bid while the US 10-year Treasury yields gain 1.2 basis points (bps) to 0.656% by the press time.

Considering the presence of the preliminary PMIs for the UK, EU and the US, it can be said that the market players will have an active session.