U.S. equity futures ticked higher and the dollar held gains as investors weighed the impact of President Donald Trump’s barrage of tweets on fiscal stimulus. Asian equities were mixed.

S&P 500 futures climbed after the benchmark fell more than 1% overnight on his decision to end negotiations until after the election. Fresh comments from Trump calling for support for airlines and the Paycheck Protection Program helped reverse earlier losses. Shares saw gains in Hong Kong and South Korea and fluctuated in Japan. Treasury yields pared overnight declines. Nasdaq contracts had earlier retreated after a House panel proposed a series of far-reaching antitrust reforms to curb the power of U.S. technology giants including Amazon.com and Alphabet Inc. European futures pointed lower.

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FX Overnight News:

• President Donald Trump ended talks on Tuesday with Democrats on a new stimulus package for his pandemic-hit country, tweeting that after he wins the presidential election in November “we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
• Federal Reserve Chair Jerome Powell called once more for additional fiscal support from the government, warning of the risks if authorities did too little to support the economic rebound.
• Total coronavirus cases approaches 39 million globally, with parts of Europe still suffering badly from a second wave of the virus, despite signs of the infection curve flattening again in countries such as Spain and Italy.
• This fresh bout of Covid-19  risks delaying the euro zone's economic recovery, European Central Bank President Christine Lagarde said on Tuesday.
• The latest German industrial production release put this into perspective, falling 0.2% in August compared with the expected 1.5% gain.
• Oil prices slumped Wednesday, weighed by the reduced likelihood of a new coronavirus relief package as well as a larger-than-expected build in crude oil supplies.

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FX Overnight Volatility

Chart of the Day:

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