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Core markets generally tight since the Asia re-open.

  • Continued fiscal impasse in DC and a relatively downbeat assessment re: the prospects of a pre-election fiscal deal from U.S. Tsy Sec Mnuchin weighed on risk on Wednesday (although he has tried to put a more positive spin on matters in recent comments), while U.S. corporate earnings results were mixed.
  • COVID-19 worry continues to ramp up in Europe with curfews imposed in major French cities, increased scrutiny/preventative measures evident in Germany (with the potential for stronger moves if the latest offerings do not work) and heightened chatter surrounding announcements re: London going into a local lockdown ahead of the weekend.
  • An address from RBA Governor Lowe (underway now) and the Australian labour market report headline the Asia-Pac docket on Thursday. Chinese inflation data is also due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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