US stock futures have hit the limit-down level just minutes into the start of the Asian trading week, while most major Asian indexes began the week in the red. This comes as the number of confirmed Covid-19 cases globally breached the 300,000 mark over the weekend, while the US government’s plans for a US$2 trillion fiscal support package was met with political resistance, dealing a blow to investors who are hoping for some much-needed relief for the world’s largest economy.

The political wrangling in Congress could last anywhere between 12 hours to a few days before policymakers may agree on the details of the economic rescue package. In the meantime, the selloff in global equities is expected to continue as investors are given scarce reason to push stocks higher.

The S&P 500 futures have hit the limit down levels, which triggers a trading halt, for the ninth time in 10 days. Futures for the Dow Jones Index are falling by 4.88% at the time of writing, pointing to another day of losses when trading begins in New York.

New week, same Dollar

The Dollar index is still holding above the 103 psychological mark, prompting declines in most Asian currencies while triggering a mixed response from its G10 peers. The Japanese Yen is the star performer on Monday, gaining over 0.7 percent at the time of writing to test the 110 level against the US Dollar.

Considering the palpable risk aversion in the markets, which has triggered investors into clamoring for the Dollar for the refuge it provides, demand for the US Dollar is expected to remain elevated. Should the Dollar-funding crunch show signs of easing while investors’ patience levels continue being worn down, the Yen’s lure as a safe haven asset should eventually shine through once more.

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