Futures Jump Ahead Of Yellen Hearing, Hong Kong Stocks Soar

Global markets and S&P futures rebounded overnight, continuing their advance during Monday’s MLK holiday and recouping all of their Friday losses, tracking gains for shares in most of Europe and Asia on the back of frenzied buying Hong Kong shares by mainland China investors, as traders awaited a speech by Treasury Secretary nominee Janet Yellen in which she’s expected to call for expansive government action to bolster the U.S. economy.

In today’s main event Yellen is expected to speak before the Senate Finance Committee at 10 a.m. – a speech for which we won’t collect $200,000/hour from Citadel – in a discussion likely to cover topics including President-elect Joe Biden’s $1.9 trillion Covid-19 relief plan. She will tell lawmakers that low borrowing costs mean it’s time to “act big,” according to her prepared remarks because apparently doubling the Fed’s balance sheet to $7+ trillion in a few months is not “big enough.”

“Yellen is a positive,” said Mohit Kumar, strategist at Jefferies International. “We should have greater co-operation between the Fed and the Treasury, with both the monetary and fiscal policy working together and supportive. This is a good backdrop for risk sentiment.”


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