S&P 500 Futures fade bounce off late-August low amid mixed catalyst

• S&P 500 Futures print 0.50% gains despite stepping back from 3,443.
• India-China border tension joins Sino-American tussle, Brexit woes also probe the risk-on mood.
• Global markets await US traders’ return for fresh impetus.

S&P 500 Futures drop to 3,434 amid the initial hour of Tuesday’s Tokyo open. Even so, the risk-barometer flashes 0.50% gains by the press time. On Monday, the US equity derivative pulled back from the lowest since August 20 while snapping the previous two-day downside.

Although the absence of any major market positive data highlighted the hopes of the European Central Bank’s (ECB) dovish stand at the week’s start, the Labor Day Holiday in America restricted market moves.

Recently, the Washington-Beijing tension escalated after China’s announced new visa restrictions to retaliate the Trump administration’s punitive measures over the Asian major. On a different note, China is having a tough time with its neighbor India as both the nations struggle over border disputes wherein India fired shots off-late.

Elsewhere, hopes of the US stimulus also remain high as Friday’s upbeat jobs report favor the Republicans to have an upper hand in the aid package discussions. Also increasing the odds are previous comments from House Speak Nancy Pelosi who once cited a positive attitude towards unemployment claims.

It’s worth mentioning pre-election chatters in New Zealand and Japan adds to the cautious market sentiment while a lack of major data/events following the US close also trouble traders.

Against this backdrop, Japan’s Nikkei 225 mark 0.30% gains whereas the US 10-year Treasury yields consolidate Friday’s heavy gains around 0.71%.

Considering an empty calendar, traders will wait for the US players’ return from the extended weekend. The initial moves may cheer Friday’s upbeat employment data but the optimism is likely to fade if China manages to keep the risk-off active.