Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Stock Index Futures Extend Gains Amid Reopening Optimism

Published 2020-05-26, 12:48 a/m
Updated 2020-05-26, 01:27 a/m
© Reuters.

© Reuters.

(Bloomberg) -- U.S. stock-index futures extended gains in Asia as investors weighed the prospects of economies reopening with simmering trade tensions between Washington and Beijing.

Contracts on the S&P 500 rose to 3,000.50, the highest since March 6, as of 1:04 p.m. in Tokyo, adding to gains during overnight trading from their closing level of 2,953.00 on May 22. The underlying S&P 500 closed at 2,955.45 on Friday. U.S. financial markets were shut Monday for Memorial Day.

“It’s the grand re-opening that matters, with the S&P 500 within earshot of the psychologically fundamental 3,000 mark,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a research note. “If traders can put some headroom above that level, the view that this rally is only a bounce from oversold will most certainly give way to the wall of money argument, triggering another considerable round of bear market capitulation.”

U.S. index futures extended gains on Monday after German businesses surveyed by Ifo showed cautious optimism in May, with a gauge of expectations rising after the previous month’s plunge. The report preceded data showing South Korea’s consumer confidence jumped in May from the lowest level since the global financial crisis as progress in curbing the coronavirus outbreak somewhat eased concerns about the economy.

Japan’s stock market advanced as the nation inched toward resuming more activities Tuesday after a dropoff in virus cases led the government to end its state of emergency and bring a new focus to rebuilding a battered economy. Meanwhile, Hong Kong’s leader defended China’s moves to impose sweeping national security laws in the territory amid renewed protests and growing international concern over what it would mean for the city’s future autonomy.

“A full reopening of Japan, and vaccine hopes from the United States, has shunted Hong Kong worries to the back of the equity market’s minds,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific., wrote in a note. “What is clear is that the peak-virus trade continues to maintain its strong positive momentum.”

©2020 Bloomberg L.P.

 

Latest comments

58220 Americans died in the Vietnam war over 20 years under four presidents. Today, 99805 Americans died of Covid-19 with over 1.7 Million infected in three and a half months under Donald Trump. The US went into Vietnam knowing the consequences, Trump did the same with Covid-19. Can't say that Trump isn't efficient! Despite the increased defence spending, Trump could not defend the US from his 2020 Covid-19 Vietnam War. Instead he surrendered to this enemy with his poor planning and cuts to health care blaming the rest of the world for his incompetence, and putting all Americans in danger, as well as Canada. Covid-19 knows no party lines. Bleach is still his #1 cure all. Trumpvirus is falling in disgrace! Good luck in November!!!🤣🤣🤣🙈
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.