S&P 500: Futures regain 3,200 as rumours over Texas shutdown died down

• S&P 500 Futures keep recovery moves from 3,191.
• Texas Governor Greg Abbott ruled out speculations of the state shutdown.
• US virus infections cross 3.5 million after the biggest daily increase in numbers.
• A light calendar offers easy Asian session but risks of US-China tussle can’t be ignored.

S&P 500 Futures rise to 3,205, up 0.38% on a day, during the initial hour of Tokyo open on Friday. The risk barometer refrains from following the previous day’s downside while printing a third positive daily performance of the week.

The equity derivative picked up bids after Texas Governor Greg Abott nullified the previous chatter concerning the state closure due to the increasing coronavirus (COVID-19) cases. The state leader also said, "It will take a few weeks to see a reversal in coronavirus case surges."

Read: Texas Gov. Abbott says “there is no shutdown coming” as coronavirus cases surge

Even so, the risk-one sentiment lacks upside momentum as the surge in the US pandemic numbers continues. As per the latest data, America marked the biggest daily increase in new cases with over 70,000 numbers for Thursday. This makes the global count beyond 13.5 million and fades the recovery hopes.

Also challenging the risk-on mood is the Sino-American tension. As per the latest headlines from Financial Times, the US policymakers are weighing to ban the Chinese app TikTok citing national security reasons. On Thursday, the New York Times mentioned that the Trump administration members are thinking over a travel ban on Chinese Communist Party members. To counter the US, China’s Global Times keeps spreading worrisome headlines and takes over the war of words.

Against this backdrop, the US 10-year treasury yields seesaw around the previous day’s close of 0.618% whereas stocks in Japan and Australia also portray a lack of major daily change. It’s worth mentioning that the Wall Street benchmark ended up marking below 1.0% losses on Thursday after market sentiment turned heavy.

Moving ahead, global traders may witness choppy sessions amid a light calendar before the preliminary readings of July month US Michigan Consumer Sentiment Index, expected 79 versus 78.1 prior. Even so, risk catalysts can keep playing their roles and will offer intermediate small moves.