U.S. futures edged up and Asian stocks trended lower Wednesday as the American earnings season began and with no sign of a quick end to the stalemate over U.S. fiscal stimulus. Treasuries and the dollar were steady.

Hong Kong equities flatlined as trading resumed after closures Tuesday due to a tropical storm. China Evergrande Group shares slumped after the embattled developer raised less than anticipated in a share sale. A speech from China President Xi Jinping in Shenzhen on Wednesday where he laid out a broad vision for the region’s growth provided little in the way of market-moving news.

Losses were modest across the region, and European futures ticked up. The won was little changed after the Bank of Korea kept its key interest rate on hold as expected. Crude oil dipped.

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FX Overnight News:

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• The International Monetary Fund is due later Wednesday to publish its most detailed study of the pandemic’s impact on public finances. The central point is expected to be that it’s still too early for governments to worry about having to pay for rescue efforts and thus ease back on fiscal spending.
• European Central Bank President Christine Lagarde is set to speak later Wednesday at the virtual annual meetings of the International Monetary Fund and the World Bank Group, and she is likely to press home that more is needed to combat this outbreak.
• The latest news surrounding the Covid-19 pandemic is hardly optimistic, with countries across Europe widening restrictions to try to regain a grip on the pandemic.
• At the same time, Eli Lilly (NYSE:LLY) placed its antibody test on hold due to potential safety concerns, just a day after Johnson & Johnson (NYSE:JNJ) paused its Covid-19 vaccine trial because of a participant’s unexplained illness.
• Oil prices edged lower Tuesday amid concerns of demand stagnating as rising coronavirus cases, particularly in Europe and the U.S., cause growth to slacken.

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FX Overnight Volatility:

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Today's Economic Calendar:

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Chart of the Day:

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Source: Bloomberg, investing.com

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