Morning Report – Monday 26th October

Main Headlines

Spain and Italy introduced tough new Coronavirus restrictions over the weekend. Italy introduced the harshest public health restrictions since the end of the first lockdown and Spain announced a nationwide curfew. Other European countries such as Germany and the U.K. continue to register record new daily cases.

The Senate voted to advance the nomination of Amy Coney Barrett to the US Supreme Court on Sunday. The Senate voted largely on party lines 51-48 and means that there can be a confirmation vote as early as today. This will most likely tip the balance 6-3, in favour of Conservatives.

Four close aides of Mike Pence tested positive for Coronavirus over the weekend. Pence is said to press ahead with planned engagements despite this, and Donald Trump continued to downplay the virus saying that increased testing is the reason for the surge in cases and a vaccine is very close.

GBP

The pound weakened in early morning trading today. Brexit talks have once again been extended into the middle of the week, amid optimism for an agreement. The weekend was dominated by football star Marcus Rashford’s disagreement with the Government over free school meals.

EUR

The euro is falling against the dollar in early morning trading today. France and Netherlands chalked up record numbers of daily infections, and may look to follow the lead of Spain and Italy and increase restrictions. The day is light on the economic data front with only preliminary France GDP numbers released.

USD

The dollar is rising against most major currencies this morning as fiscal stimulus deadlock and rising global Coronavirus cases signal a risk-off sentiment. Nancy Pelosi said a pandemic relief package could be passed this week, but the Republican-led Senate may not act before the US election on 3rd November.

Main Economic Data/Central Banks/Government (All Times GMT)
6:30 a.m.: France Preliminary GDP
8:00 a.m.: Spain Sept. PPI
9:00 a.m.: Germany Oct. Ifo Survey
2:00 p.m.: US New Home sales
WTO holds dispute settlement meeting on EU-U.S. tariffs