Global markets dropped on Friday as Brexit negotiations appeared on the verge of collapse, while delays over a new fiscal stimulus package and surging coronavirus infections hit risk appetite pushing S&P futures and sterling lower as Treasurys rose and the dollar and the dollar jumped most in two weeks.
At 7am, Dow futures were down 213 points, or 0.7%, S&P 500 E-minis were down 28. points, or 0.8%, and Nasdaq 100 E-minis were down 92.75 points, or 0.7%. Global stock markets were also subdued, with the MSCI world equity index, sliding into the red after scaling record highs earlier this week as the UK became the first country in the world to begin a mass COVID-19 vaccination program. Cyclical stocks led declines in premarket trading on Friday, with energy, industrial and financial sectors all lower. Wells Fargo and JPMorgan slid more than 1%, while industrial bellwethers Boeing and 3M fell 1.6% and 0.9% respectively. Mastercard dropped 1.4% after the UK Supreme Court gave the green light for a $18.5 billion class action against the company for allegedly overcharging more than 46 million people in Britain over a 15-year period.
Global markets slumped after the latest episode in the neverending drama that is Brexit, when Prime Minister Boris Johnson said on Thursday there was “a strong possibility” Britain and the European Union would fail to strike a trade deal. Britain and the EU have set a deadline of Sunday to find an agreement, before Britain’s exit from the bloc on Jan. 1. The odds of a disorderly Brexit rose to 61% on Friday from 53% a day before, according to the Smarkets exchange.