S&P 500 Futures trims early losses as US House approves covid relief bill, government funding

• S&P 500 Futures trim early Asian losses but remain mildly offered on a day.
• US House approves $1.4 trillion government funding after passing the $900 billion aid package.
• Sino-American tussle, allegations over Russian hack battle vaccine, Brexit hopes.

S&P 500 Futures mark corrective recovery from an intraday low near 3,675, currently around 3,684, during early Tuesday. Even so, the risk barometer stays mildly offered amid mixed clues and cautious sentiment.

While US policymaker’s support to the much-awaited aid package joins recently positive sentiment backed by the coronavirus (COVID-19) vaccine updates, bears concentrate on US-China tension and likely worsening of US-Russia relations. During early Asia, the US announced further visa restrictions on Chinese officials with  Department of Homeland Security chief Chad Wolf suggesting further restrictions on China, including tighter visa curbs on Chinese Communist Party members as well as a broader ban on goods made with forced labor. On the other hand, US Senator Ron Wyden said, Treasury staff tells senate finance committee that treasury suffered a serious breach, beginning in July, the full depth of which isn’t known.”

Read: Majority of US House of representatives backs government funding bill and $900 billion for coronavirus aid

It should also be noted that the progress in Brexit talks, as suggested by the MNI news, battle increasing odds of a national lockdown in the UK to change the optimism.

The economic calendar is mostly silent with final readings of the US and the UK Q3 GDP likely to confirm 15.5% and 33.1% respective QoQ growth. The same could offer additional filters and further pressure on the market moves.

It should be noted that the US Treasury yields and stocks in Asia-Pacific have been downbeat off-late and the same could weigh on the market sentiment during the early-European session. Though, any negative surprises, likely from Brexit and the new variant of the coronavirus (COVID-19) found by the UK, could challenge the market bulls.