Rein in the support
Today’s news headlines:
‘US Treasury refuses to extend some of Fed’s crisis-fighting tools’. The US Treasury department has decided not to extend a number of emergency lending programmes set up to help fight the economic impact of the coronavirus pandemic. The Federal Reserve has been ordered to return unused funds from these facilities which are set to expire in late December. Fed officials issued a rebuke to the Treasury department, after having made the case for an extension to the lending facilities, which would help guarantee stability in financial markets amid a recent surge in coronavirus cases. (Financial Times)
‘UK retail sales rise as Christmas shopping kicks off early’. Retail sales in Britain rose for the sixth month straight in October, boosted by demand in household goods. Reports from businesses suggest that last month’s rise was driven by an early start to Christmas shopping by consumers. Online shopping, which has boomed since the pandemic hit, is up 45% when compared to February and most retail sectors are now operating at pre-crisis levels. (Bloomberg)
Today's events, rates, and data
The US Dollar halted its recent slide and US stock futures declined this morning, as the US Treasury department ended some of its support for the US economy. The Pound is also coming under a little pressure this morning, following a report from The Times newspaper which states that EU leaders will urge the European Commission to publish no-deal Brexit plans with the deadline approaching.
UK Gfk Consumer Confidence: -33 vs -31 previously
UK Retail Sales: 1.2% vs 1.4 % previously
ECB President Lagarde Speaks: 8.15am
Canada Core Retail Sales: 1.30pm
Canada Retail Sales: 1.30pm
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