S&P 500 Futures refresh record high above 3,500 despite mixed catalysts

• S&P 500 Futures begins the week with a gap-up followed by a run-up to refresh the record-high to 3,523.88.
• Chinese PMIs recede in August, four of five major state-owned banks increased bad debt provisions.
• Abenomics to continue even after PM Abe’s resignation, Japanese data for July flashed mixed signals.
• Speech from Fed’s Clarida, trade war headlines may offer intermediate clues.

S&P 500 Futures take the bids near 3,520, up 0.50% on a day, amid Monday’s Asian session. The risk barometer refreshed the record high to 3,523.88 before a few minutes while extending its seven-day winning streak to the eighth one.

Although the US dollar bounce and hopes of further stimulus could be considered as major factors favoring the market’s optimism, signals from Japan Times that Abenomics will continue even after PM Shinzo Abe retires keep the traders hopeful of the further money supply. Furthermore, the US health official Dr. Fauci cited increased hopes of an early vaccine to the coronavirus (COVID-19) pandemic.

Talking about the negatives, China’s NBS Manufacturing PMI slipped below 51.1 prior in August while Japan’s Retail Sales ease for July and the Industrial Production flashed mixed signals for the reported month. Elsewhere, Australia’s TD Securities Inflation dropped to 0.1% MoM in August.

Other than the mixed data, traders also got caught amid challenges to further money supply from China as Reuters cited during the weekend that Four of China's five largest state-owned banks said they have increased their provisions against bad debt. Additionally, China’s anti-subsidy investigation on Aussie wine imports flashes trade-negative signals.

Even so, the market sentiment remains upbeat with the US 10-year Treasury yields rising to 0.738% while the Asia-Pacific stocks stay mostly in the positive region with Japan’s Nikkei 225 leading the run-up with 1.92% gains.

Although the economic calendar has a few second-tier data, markets will wait for comments from the Federal Reserve Governor Richard Clarida for fresh impetus. Additionally, the US Dallas Fed Manufacturing Business Index may also offer intermediate direction.

Read: S&P 500 Weekly Forecast: Best August since 1986, how will September start?