In the US, both sides have agreed to resume negotiations regarding the much-anticipated coronavirus stimulus bill but Treasury Secretary Steven Mnuchin delivered a blow on Thursday with a letter to Fed Chair Jerome Powell requesting that a number of emergency lending programs be allowed to expire at the end of December. This would effectively reduce the central bank’s ability to support the economy. US stock index futures fell on the news overnight.
Brexit talks continue, albeit remotely, after one of the EU team tested positive for Covid-19. There has been increasing hope that a deal can be agreed within the next few days. There were calls from some countries urging the EU to increase planning for a no-deal Brexit in case current negotiations do not result in agreement.
On Thursday UK and European stocks closed lower on concerns about rising coronavirus cases and the economic impact of shutdown restrictions. US stocks strengthened late in the trading session but futures fell back overnight as we have said.
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