S&P 500: Futures fades upside momentum past-3,200 as virus woes battle hopes of further stimulus

• S&P 500 Futures recede from 3,222, extend Friday’s recovery moves from 3,195.12.
• Fears of double-dip recession gains support from increasing virus numbers.
• European policymakers inch closer to Euro 750 billion plan, US Senate Leader may disappoint with a $1 trillion aid package.
• BOJ minutes struck an upbeat tone, Aussie Treasurer indicates further stimulus.

S&P 500 Futures print 0.08% gains while taking rounds to 3,217 during the initial hour of Tokyo open on Monday. The risk gauge recently dropped from 3,222 while also keeping Friday’s U-turn from 3,195.12. While the fears of the double-dip recession seem to guard the index upside, expectations of further stimulus from the global policymakers keep the bulls hopeful.

Read: S&P 500 Index Weekly Forecast: Nothing but blue skies from now on?

The Financial Times (FT) cites the recent resurgence of the coronavirus (COVID-19) in the US suggesting the double-dip recession. The latest figures from America indicate over 67,000 people infected due to the deadly disease on Sunday, making the total count rise further past-3.7 million. Elsewhere, Tokyo marked a near 300 figures whereas Victoria flashed 275 new cases in its recent update.

The European Union (EU) Summit continues to extend beyond the limits as few nations keep raising bars for the Euro 750 billion asset plan. On the other hand, the US Senate Leader Mitch McConnell is also expected to disappoint market rumors of a $3 trillion plan with close to $1 trillion of aid in his upcoming announcements, per Axios. Furthermore, the BOJ minutes reiterate that the policymakers stay ready to use all options available. Though, “members agreed tension in global financial markets had abated due to aggressive fiscal and monetary policies,” the minutes’ statement said.

In Australia, the policymakers are likely to announce another aid package during the week, comprising mostly fiscal policies and extension of previous help. The Aussie Treasurer Josh Frydenberg recently signaled an extension of small loans with an increased payback period and the higher amount at disposal to keep the sentiment positive.

Amid all these catalysts, the US 10-year Treasury yields struggle around 0.62% whereas Japan’s Nikkei 225 and Australia’s ASX 200 print mild losses as we write.

Considering a lack of major data/events, traders may have to witness a dull Asian session ahead. However, any more worsening of the COVID-19 figures may recall the bears.