Last Week's Close
E-mini S&P 500 Futures (December): Settled at 3661.25, down 7.25
E-mini Nasdaq-100 Futures (December): Settled at 12,368, down 34.00
U.S. benchmarks are starting the week with strong footing. Bullish tailwinds are coming from a path forward in Washington, the FDA granting Emergency Use Authorization to Pfizer’s vaccine late Friday, and an extension to Brexit talks.
On Friday, funding for the U.S. government was extended by 1 week. This paves a path for Congress to pass a budget and Covid-19 aid all at once, but the clock is ticking. Markets are reacting positively as a $1.4 trillion spending bill is within reach and lawmakers also introduced 2 fiscal relief packages varying from $748 billion to $908 billion. Still, there are sticking points. President Trump’s border wall and defense spending will prove to be hurdles on budget talks, whereas aid to states’ local governments and liability of employers are barriers to stimulus talks.
Although the number of new Covid-19 cases in the U.S. is off last week’s record, hospitalizations have continued to climb. Still, the market is finding solace in the rollout of a vaccine. Distribution of Pfizer’s has already begun, and all eyes will be on the FDA’s fast-tracking of Moderna’s by the end of the week.
It comes as no surprise that talks between the UK and EU continued after Sunday’s self-imposed deadline. The determination between both sides to anchor out a deal before year-end is bringing a relief to risk assets. GBP is higher by 1.5% and the weaker USD is supportive to the market broadly.
The U.S. economic calendar is bare today, but tonight there's a full slate of data from China, including Industrial Production, due at 8:00 p.m. CT.
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