Fiscal stalemate and long tunnel vision

Friday 2nd October 2020Equities in the US rose overnight despite a stalemate on the fiscal stimulus package. Optimists insist there is some hope that a deal will be reached but, as NAB’s David de Garis puts it, the whole thing is being held back by philosophical differences. The pound has had a choppy day today, with little progress on the Brexit talks. The EC has started legal proceedings against the UK with regard to their Internal Markets Bill, giving the UK Prime Minister a month to respond. By then you’d hope a trade deal will be reached, but there’s no guarantee the two parties will go into tunnel talks. Non-farm payrolls from the US will be the major bit of new data tonight, the weekly jobs numbers released last night showed the claw back in employment is slowing and many US companies have announced major layoffs this week.

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