S&P 500 Futures, US 10-year Treasury yields portray risk reset in Asia

• S&P 500 Futures rise 7.88 points, or 0.28%, to 2,855.
• US 10-year Treasury yields gain 0.9 basis points (bps) to 0.628%.
• Hopes of further stimulus, economic restart seems to have favored risks off-late.
• China data, trade/virus headlines remain the key ahead of the US figures.

With the latest headlines suggesting White House inching closer to another stimulus package, the market’s risk-tone sentiment recovers amid the initial Tokyo session on Friday. While portraying the same, S&P 500 Futures rise 7.88 points, or 0.28%, to 2,855 whereas the US 10-year Treasury yields gain almost one bps to 0.628% by the press time.

The CNBC came out with news, relying on its sources while saying that the White House would likely support a new round of stimulus checks. Earlier during the day, Dallas Fed President Robert Kaplan and US Senate Majority Leader Mitch McConnell also favored the need for further stimulus.

Earlier risking the markets were updates from the US that suggest the Senate empowering the Trump administration to levy sanctions on Chinese officials involved in the Xinjiang case. It should also be noted that a separate Republican bill was also tabled that could enable President Trump to sanction China during the virus outbreak investigation.

That said, Wall Street managed to post gains amid early hopes of further stimulus, as indicated by the Fed Chair Jerome Powell the previous day.

Although qualitative catalysts are likely to remain in the driver’s seat, China’s April month Industrial Production and Retail Sales can offer immediate direction to the markets. Additionally, the heavy economic calendar in the US may also offer a busy day to the traders while going forward.