E-mini S&P 500 Futures (December): Settled at 3690.75, down 7.25
E-mini Nasdaq-100 Futures (December): Settled at 12,596, up 70.00
U.S. benchmarks are again on their back foot ahead of the open. This time as enthusiasm fades due to Senate Majority Leader Mitch McConnell’s refusal to support what is characterized as the $908 billion bipartisan Covid-19 relief package. Instead, McConnell is pushing his skinnier $500 billion plus deal which lacks support to state and local governments, hospitals, airlines and unemployment benefits, among other things. Developments in Washington will certainly play an integral role in today’s tape as the December 11th budget deadline looms. Additionally, the continued surge in Covid-19 cases across the U.S. as we head into the dead of winter is weighing on sentiment. However, with the vaccine developed by Pfizer and BioNTech, the UK became the first western country to begin mass inoculations.
On today’s economic calendar, German ZEW economic sentiment was better than expected, whereas Eurozone GDP data was essentially in line with expectations. It’s a rather quiet start to the week from the U.S., nonfarm productivity marginally missed, and unit labor costs were better. There is a 3-year U.S. Treasury note auction at noon CT that kicks off a deluge of supply and tonight we look to CPI and PPI from China. USD is paramount to the risk landscape and this week we look to an ECB policy meeting and U.S. CPI data, all the while Brexit negotiations remain in the background.
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