S&P 500 Futures, US Treasury yields keep optimism on the table despite hidden threats

• Risk catalysts remain on the positive side.
• Hopes of easing lockdown restrictions keep playing their role.
• The US threatens China, oil prices remain pressured.

With the risk-on sentiment marking its presence, S& 500 Futures and US Treasury yields extend the previous day’s gain during the initial hour of Tokyo open on Tuesday.

While S&P 500 Futures register 0.08% gains to near 2,868, US 10-year Treasury yields add 1.3 basis points (bps) to 0.667% by the press time.

On the contrary, Japan’s NIKKEI drops 0.40% to 19,720 while bearing the burden of downbeat Japanese employment data. The March month figures of Japan’s Job/Applicants Ratio and Unemployment Rate suggested 1.39 and 2.5% marks versus 1.4 and 2.5% respective forecasts.

The upbeat comments from US President Donald Trump seem to put a floor under the market’s trading sentiment while easing lockdown restrictions in Australia and New Zealand seem to add strength to the optimism.

Though, sustained weakness in oil prices and doubts over the US economy re-open, as per The Hill, seems to cap the market’s risk-on sentiment under pressure.

Unlike Monday, today’s economic calendar seems to have a little more on the watch-list, which in turn could keep traders busy and challenge the present upbeat sentiment. However, a light calendar in Asia may continue stretching the previous momentum during the early hours except for any negative surprises concerning the coronavirus (COVID-19).