| Want the lowdown on what's moving European markets in your inbox every morning? Sign up here. Good morning. Europe's stimulus proposal arrived, U.S. deaths hit 100,000 and tensions between Washington and Beijing are simmering. Here's what's moving markets. Stimulus Reopening plans are lifting the mood in markets but the 750 billion euro stimulus package unveiled by the European Union is now likely to take center stage as it attempts to shore up an economy flirting with the worst-case scenario foreseen by its central bank. It is also a radical vision that could herald unprecedented integration between member states and will be essential in helping countries attract foreign investors after the pandemic. Now, the process of getting the sign off from member states will begin. Austria has said it wants talks on the size and shape of the plan while the move will provide a serious test for the safest asset the EU has to offer: German bonds. 100,000 Covid-19 deaths hit 100,000 in the U.S., giving it the world's highest death toll from the virus. Plans to reopen continue apace across Europe. The Netherlands is accelerating the lifting of restrictions and opening gyms earlier than anticipated, while Ireland is staying cautious but is ready to fire up efforts to revive growth. Italy, already relatively far into its reopening, has seen new cases increase each day this week, similar to what's been seen in South Korea. In the U.K., criticism continues over the government's handling of of the controversy involving the Prime Minister's top aide despite Boris Johnson asking people to "move on." In Russia, the lockdown in Moscow will be eased as new infections slow. Autonomy The U.S. said that it can no longer certify Hong Kong's political autonomy from China, a move that could have far-reaching consequences for the special trading relationship the city currently enjoys. Adding to the mounting tensions between the two countries, China blocked a U.S. call for a UN Security Council meeting on Beijing's plans in Hong Kong. At the same time, a body that advises the U.S. Congress warned of increasing risks from China's banking system and questioned Wall Street's push into the nation as its capital markets open. Underlying this in currency markets, the yuan was testing the weakest levels on record, though China arrested this with a stronger-than-anticipated fixing. Oil Supply Oil prices are extending declines following a report showing U.S. crude inventories increased for the first time in three weeks, sparking renewed fears on a supply glut and putting crude on the path to its first back-to-back daily declines in weeks. Crude had already seen its rally curtailed after Russia said it is determined to ease supply cuts in July, though fears on this were eased after Russia and Saudi Arabia pledged to closely coordinate with each other ahead of the OPEC+ meeting in a couple of weeks. Sentiment in the market remains fragile, with oil refinery closures to be accelerated by the virus and sweeping job cuts still materializing. Coming Up… European and U.S. stock futures are trending higher again going into Thursday's session, with Asian stocks rising as investors weigh up the reopening of economies with the simmering U.S.-China tensions. Watch for more sector rotation after sentiment turned in favor of beaten-down value stocks on Wednesday. There's a bundle of economic data due, including euro-area confidence numbers, German inflation and U.S. GDP later in the day. The earnings calendar is relatively quiet, but keep an eye on Polish video-game maker CD Projekt SA and U.K. catalysts manufacturer Johnson Matthey Plc. What We've Been Reading This is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen is interested in this morning U.S. stocks continue to move almost as one, showing the tight grip the coronavirus still has on markets. The S&P 500 Index's three-month realized correlation — a measure of how closely the top stocks in the benchmark move in relation to one another — has steadied around the 0.8 level, its highest in about eight years. That's even as other gauges of market stress such as the Cboe Volatility Index have retreated toward normal levels. The divergence suggests investors continue to focus on just one main driver — the global pandemic — making it harder for active fund managers to beat their benchmarks. From beginning the year with a correlation of just 0.19, the gauge spiked to 0.85 in mid-March toward the peak of the coronavirus sell-off, before plateauing just below. A maximum possible correlation of 1.0 would signify all stocks are moving in lockstep. Higher correlations spell trouble for active managers looking to beat indexes through stock picking. If most equities are moving in the same direction, it's difficult to choose one that stands out from the crowd.  Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. | 
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