S&P 500 Futures struggle for direction amid mixed risk catalysts

• S&P 500 Futures recovers early-day losses.
• US VP Pence is not self-isolating versus the early-day reports.
• US President Trump differs from the policymakers’ upbeat concerns for China.

A light economic calendar keeps the trade/virus updates on the driver’s seat.

S&P 500 Futures retraces the early-day losses while taking rounds to 2,925, down 0.11% on a day, amid the pre-Tokyo Asian session on Monday. The risk barometer recently recovered after the news broke that the US Vice President is not self-isolating as against the previous updates.

Earlier in Asia, Bloomberg’s Jennifer Jacobs tweeted, "Vice President Mike Pence is self-isolating away from the White House after an aide was diagnosed with coronavirus on Friday, per several people familiar with the situation. Pence has repeatedly tested negative for COVID-19, including today, I’m told."

However, the VP’s office recently confirmed that Pence is not self-isolating & will be at the White House tomorrow.

In addition to the coronavirus (COVID-19) related news, US-China trade updates also flash US and Chinese diplomats agreed to remain in communication and cooperation on Friday, as per Xinhua, but US President Donald Trump said otherwise in his latest comments. The Republican leader mentioned that he is “having a very hard time with China” and that COVID-19 “sort of overrides so much”. US President Trump also said, “I’m very torn, I have not decided yet if you want to know the truth.”

Furthermore, the Aussie-China tussle is also in focus after China’s Global Times (GT) suggests further hardships for Australia. The reason could be traced from the Aussie PM Scott Morrison’s lobbying for the inquiry into the virus outbreak.

Given the mixed risk catalysts and a lack of major data/events on the economic calendar, traders await clear guidelines for near-term direction. In doing so, they will keep a close eye on the virus/trade news.