Hanging in the balance

Today’s news headlines:

‘US tallies more than 70,000 daily Covid-19 cases for first time’. New cases of Covid-19 are surging in major US states such as Texas and Florida as a second wave of infections grips the nation. The continued spread has come despite measures to enforce strict social distancing and the scale back of reopening local economies. Dr Anthony Fauci said that the US had been less successful than Europe in controlling the virus because governments in Europe locked down 90-95% of the country bringing their baseline down to a handful of cases. (Financial Times)

‘Euphoric European markets look to leaders for a deal on recovery’. European leaders will meet for the first time in person today since the coronavirus lockdowns, to try and thrash out a deal for a €750bn recovery fund. European stocks and bonds have benefitted in recent weeks on investor hopes that the bloc will approve this historic deal, bringing some fiscal unity to its member states. However, Germany’s Merkel and France’s Macron have played down the chances of a quick deal, instead looking toward the end of the month for an agreement. (Bloomberg)

Today's events, rates, and data 

  • Chinese stocks lost ground overnight despite attempts by the state media to reassure investors over the outlook for onshore equities after this week’s mixed growth data. Meanwhile, stock futures in Europe and the US posted minor gains, and in currencies, the US Dollar held onto gains through outflows from the Chinese Yuan.

Today's events

Bank of England Governor Andrew Bailey Speaks: 11.00am
US Preliminary University of Michigan Consumer Sentiment: 3.00pm

Interbank rates:

GBP/USD: 1.2550
GBP/EUR: 1.1025
EUR/USD: 1.1383
USD/CAD: 1.3585