WILL U.S. STOCKS KEEP GAINING?
Asian stocks, U.S. and European futures advanced Monday amid optimism about some progress on stimulus talks in Washington. Treasuries dipped.
S&P 500 Index futures gained after the gauge closed higher for a third week on Friday. Stocks climbed across Asia with those in Japan outperforming. Speaker of the House Nancy Pelosi set a Tuesday deadline for more progress with the White House after lengthy discussions at the weekend with Treasury Secretary Steven Mnuchin. Treasury yields ticked higher.
Elsewhere, the pound edged up after a report officials were prepared to water down controversial Brexit legislation in a move that could revive failing talks with the European Union. Oil fluctuated ahead of an OPEC + meeting. The yuan pared gains and stocks slipped after Chinese GDP data missed expectations, though the move was muted as retail sales and industrial production beat.
FX Overnight News:
- China reported that its gross domestic product grew 4.9% in July-September from a year earlier, slower than the median forecast of 5.2%.
- European markets have been lifted by comments from U.S. House Speaker Nancy Pelosi, who said on Sunday she was optimistic legislation on a wide-ranging coronavirus relief package could be pushed through before the election.
- European Central Bank President Christine Lagarde continued the theme, telling a French newspaper that Europe must distribute its 750 billion euro recovery fund for the pandemic-hit economy promptly and should debate creating a permanent fiscal tool for the bloc.
- Europe currently accounts for over 17% of the global cases and nearly 22% of the deaths. New cases are growing at over 150,000 a day, with many countries reporting record daily increases in the number of coronavirus infections.
- Oil prices edged lower Monday on the back of the Chinese GDP news, which depressed hopes for fuel demand.
FX Overnight Volatility:
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