Talks between the U.K. and EU continue to yield little progress
Wall Street stocks finished mixed on Monday as risk sentiment has deteriorated somehow at the start of a new trading week amid a new round of COVID-19 restrictions. According to data compiled by Johns Hopkins University, the United States reported 175,663 new virus cases and 1,113 deaths on Monday. While the Nasdaq climbed to a record high, adding 0.45%, the Dow Jones and the S&P 500 shed 0.49% and 0.19%, respectively.
Asian stocks were mixed on Tuesday as surging coronavirus infections in some countries tempered market optimism surrounding vaccines. The Nikkei 225 in Tokyo lost 0.3% and the Hang Seng in Hong Kong shed 0.76%. The Shanghai Composite Index was off 0.19% while Sydney’s S&P/ASX 200 advanced 0.19%.
In Europe, equities opened slightly lower to start the day, mirroring the somewhat softer tone in US futures as well, with S&P 500 futures seen down by 0.2%. Brexit issues remain in market focus now, with investors also shifting their attention to the ECB meeting due on Thursday. Talks between the U.K. and EU continue to yield little progress, making investors nervous as time is running out to agree on a deal. The pan-European Stoxx 600 index opened 0.1% lower, with most sectors in negative territory.
Meanwhile, the dollar is little changed on Tuesday, staying close to April 2018 lows after yesterday’s bullish attempts fizzled out quickly. EURUSD is back above 1.2100 but could lack the upside momentum to resume the rally ahead of the upcoming ECM meeting that could put the common currency under pressure if the central bank expresses a dovish tone and delivers additional supportive measures. If so, the pair may retreat below the 1.2000 handle. On the other hand, further progress towards fiscal stimulus measures in the US could add to the selling pressure surrounding the greenback this week.
