S&P futures traded lower, alongside shares in Europe and most of Asia – but since rebounded from overnight lows – as worries about a delay to U.S. economic stimulus, surging virus cases across Europe and concerns about tonight’s final presidential debate and election interference weighed on sentiment. Investors also braced for another high level of weekly jobless claims, while with just 12 days to go until the US election and Europe’s struggle to contain second waves it’s become increasingly tricky for markets, according to Citi. As risk sentiment soured overnight, the USD bottomed out at yesterday’s lows, while oil and cryptocurrencies rose.
ES futures tumbled to session low just above 3,400 late on Wednesday night, when the top U.S. spy chief accused Iran of making its most direct efforts to interfere in the closing days of the presidential election, saying the Islamic Republic faked a series of intimidating messages to Democratic voters.
This followed another volatile session on Wednesday, when US shares closed lower amid signs that a stimulus package is unlikely to become law before the election, as we have said all along. Nancy Pelosi and Steven Mnuchin “made progress” in their latest talks and will speak again Thursday even as the odds remained long for a deal that could pass in the Senate.