US stimulus package news and new Corona restrictions in Europe continue to drive financial markets.
With US closed today for Columbus Day we expect a muted market activity today. This week earning season will get underway with results from U.S banks later this week. White house is shifting its position on stimulus package with Trump proposing a stripped-down coronavirus relief bill. The $1.8 trillion stimulus deal ran into opposition on both sides on Friday. Among other events later this week there some Fed speeches, US CPI on Tuesday and jobless claims on Thursday. IMF and World Bank will hold their annual meeting online later this week and Brexit saga is expected to continue with negotiations resuming this Monday. Corona virus has reached its tipping point in Europe and a set of new restrictions is expected to be announced in several countries, including UK, Spain, Italy and Czech Republic.
European stocks markets are seen opening higher helped by latest US stimulus news on Monday with DAX futures 0.4% and CAC 40 0.5% higher, while FTSE 100 futures rose only 0.2%. The move is undermined by the continued worries about Covid- 19.
Europe: The Europe’s focus today in on EZ inflation expectations and Lagarde speech. ECB’s President Lagarde is likely to reiterate the central bank’s dovish stance. EURUSD retraced on Corona virus concerns. The EU Summit on October 15-16 along with the German ZEW survey on Tuesday and key ECB-speakers are the highlights this week.
UK: UK is set to resume Brexit negotiations today with Boris Johnson October 15 deadline for the outline of Brexit deal is just a few days away. Fishing rights is still a talking point. Cable is seen trading higher this morning at 1.3030.
Oil is trading lower with Norway restoring its output and US producers pumping again. Brent contract fell 1% to US$42.41. Gold futures rose 0.4% to $1,933.
Russia: Most yields along the Russia local currency sovereign yield curve fell, with 2-year bonds moving the most in Monday morning trading. Azerbaijan and Armenia said fighting continued in and around the disputed Nagorno-Karabakh region, undermining a cease-fire agreement Russia secured in overnight talks with the two former Soviet republics. NLMK, Cherkizovo publish 3Q operating results. Bank of Russia reports trade balance for August.