Winter warning

Today's news headlines: 

‘Javid warns that Covid cases could hit 100,000 a day in UK’. The tone has shifted in the government, with many now worried about an increase in restrictions this winter should Coronavirus cases begin to worsen. The UK reported 49,139 Covid cases yesterday, with Health Secretary Sajid Javid suggesting case numbers could top 100,000 a day this winter. Pressure is building on the government, with health leaders strongly advising the return of mandatory mask-wearing, work from home orders, and the introduction of vaccine passports. (Financial Times)

‘Evergrande shares tumble after sale of services unit collapses’. Evergrande’s stock fell around 13.6% overnight after the company disclosed that plans to sell the developer’s property services division in a deal worth an estimated $2.6bn had collapsed. Evergrande commented on the slew of missed bond payments on Wednesday, highlighting that there’s still time left until the grace period expires and that there’s no other progress to report on sales for other areas of the business. (Financial Times)


Today

The S&P 500 recorded its sixth straight day of gains yesterday, ticking 0.37% higher. Across the pond, the Euro Stoxx 600 gained 0.32% despite mixed earnings results. The US 10-year Treasury Yield has continued to move higher over the course of this week, trading at 1.65% this morning. US Dollar weakening continues with the USD Index down 0.50% over the last week.

Events

UK Public Sector Net Borrowing: 21.0B vs 16.1B last month
Canada ADP Non-Farm Employment Change: 1:30PM
US Federal Reserve Bank of Philadelphia Manufacturing Index: 1:30PM
US Unemployment Claims: 1:30PM
Federal Open Market Committee member Christopher Waller speaks: 1:30PM
Eurozone Consumer Confidence: 3:00PM
US Existing Home Sales: 3:00PM
Reserve Bank of Australia Governor Phillip Lowe speaks: 8:00PM


Interbank rates:

GBP/USD – 1.3801
GBP/EUR – 1.1854
EUR/USD – 1.1641
USD/CAD – 1.2339

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.