| Want the lowdown on what's moving European markets in your inbox every morning? Sign up here. Good morning. There's no rapprochement in Brexit talks yet, Euronext says it's set for a smooth open after Monday's glitch, and there are signs of progress on U.S. stimulus. Here's what's moving markets. RebuffedThe U.K. rebuffed the European Union's effort to restart deadlocked trade negotiations, holding out for more concessions before it is prepared to restart talks that Prime Minister Boris Johnson suspended on Friday, saying that a trade deal was unlikely. "The EU still needs to make a fundamental change in approach to the talks, and make clear it has done so," Britain's chief negotiator David Frost said in a tweet after meeting his EU counterpart Michel Barnier. Johnson's office still described the discussion as "constructive" -- a view echoed by officials in Brussels, who said they have a better understanding of what they have to do to make it look like the U.K. has won something. Fire BreakAs global cases surpassed the 40-million mark, Ireland returned to a lockdown, closing non-essential stores, bars and restaurants for at least six weeks, with people urged to stay within five kilometers of their homes. Similarly, Wales imposed a ``fire break'' lockdown, closing non-essential retailers and requiring its population to stay at home for two weeks. Boris Johnson's government set a deadline of noon today for political leaders in Manchester, northwest England, to agree to tighter coronavirus restrictions or face new rules being imposed against their will. In vaccine news, Moderna Inc. said it expects interim results of its Covid-19 shot in November. Fingers CrossedExchange operator Euronext NV said it's all set for a smooth European open, after a software glitch caused its worst outage in two years on Monday, culminating in a failed closing auction. After a three-hour outage halted trading in France, Belgium, the Netherlands, Portugal and Ireland in the morning, stock trading resumed but remained in continuous trading when it was supposed to enter auction, which led to wild swings in individual stock prices. As a remedy, the exchange canceled trades made after 5:30pm Paris time. The closing auction is a key source of trading liquidity in Europe, with growing capital in exchange-traded funds relying on final prices rather than trading intraday. Narrowing GapU.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin "continued to narrow their differences" on a coronavirus relief package, a Pelosi aide said Monday, as time draws short to reach agreement on a bill that could pass by Election Day. Pelosi earlier Monday told House Democrats that significant areas of disagreement are standing in the way of any deal, according to four people who participated in the closed conference call. President Donald Trump said that if his administration did reach an agreement with Democrats, he would lean on congressional Republicans to "come along." Coming Up…It's a busy earnings day both before and after European markets close. With UBS Group AG's investment banking profit beat out of the way, the morning still holds heavyweights including Durex owner Reckitt Benckiser Group Plc and fancy booze maker Remy Cointreau SA. After the close, get ready for French large-caps including builder Vinci SA, music publisher Vivendi and logistics firm Bollore. Aside from earnings, there's a central bank rate decision in Hungary and, at the end of the U.S. day, the expiry of Pelosi's deadline for reaching a stimulus pact ahead of the election. What We've Been ReadingThis is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen is interested in this morningWhile all eyes are on the Nasdaq and the options flows and positioning surrounding it, underneath the hood the earnings engine may be beginning to sputter. Twelve-month forward EPS estimates for the tech-heavy gauge have lagged those of the S&P 500 since August, according to data compiled by Bloomberg. Now some of this is likely just a catch up -- Nasdaq forward earnings are sitting at a record high, while those of the broader S&P 500 are still well below where they started the year. But it's just as conceivable that analysts have been too optimistic about the prospects for tech as the idea they have been overly pessimistic about earnings for the rest of the market. A potential peak in relative earnings from U.S. technology stocks could be the trigger that leads to the much-discussed investor rotation into other sectors, strategists at JPMorgan wrote in a note Monday. But that hasn't come yet. The Nasdaq has continued its outperformance since hitting a recent low toward the end of September. The gauge is up over 7% since Sept. 23, compared with a 6% rise in the S&P 500.  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. | 
Post a Comment