S&P 500: Futures remain mildly bid as hopes of EU package remain intact

• S&P 500 Futures bounces off 3,241 to near the highest levels in five months.
• European summit halts for a brief break with rumors suggesting the deal is ‘imminent”.
• Figures from the US recede a bit but Aussie numbers are likely to remain worrisome.
• Japanese inflation data flashed upbeat marks, RBA minutes, Governor Lowe’s speech in the spotlight.

S&P 500 Futures print a three-day winning streak while taking the bids near 3,248, up 0.10% on a day, amid the initial hour of Tokyo open on Tuesday. The risk gauge refreshed the highest since February 25 the previous day but kind of stopped around 3,250.12 from further rising.

The bulls have earlier cheered hopes of further stimulus from the US and Europe whereas updates concerning the coronavirus (COVID-19) vaccine added to the optimism. The European Summit stretches to the fourth-day of negotiations with the latest update suggesting that the policymakers are mostly agreed to a plan comprising 390 billion Euros of grants and 360 billion Euros of loans.

Talking about the vaccine, a mixed effort of AstraZeneca and Oxford University suggests upbeat results of the clinical trials while joining the league of Gilead and Moderna. On the other hand, the latest pandemic numbers from the US suggest a bit of easing at the week’s start but Victoria's 370+ figures of new cases keep the markets’ risk-on mood capped.

Elsewhere, Japan’s June month National Consumer Price Index (CPI) reprints 0.1% mark, above 0.0% forecast, on YoY. Further, Core figures excluding Fresh Food and Fuel also matched 0.4% prior while crossing 0.3% marker expectations.

Amid all these plays, US 10-year Treasury yields attempt to regain 0.62% mark after declining 1.5 basis points (bps) on Monday.

Looking forward, updates from the European Union (EU) summit remains as the key while RBA minutes and comments from the RBA Governor Philip Lowe can offer immediate direction.