Daily summary: Global stocks fall on Brexit and stimulus worries

• Germany considers going into second lockdown before Christmas
• Boris Johnson issues warning to prepare for no-deal Brexit
• US FDA advisory panel recommends approval of Pfizer Covid-19 vaccine
• US stimulus talks appear gridlocked

European indices tumbled today as the prospect of new strict restrictions in Germany and the lack of progress in Brexit negotiations weighed on market sentiment. Germany's interior minister Horst Seehofer said country must implement hard lockdown immediately, as Chancellor Angela Merkel and the heads of the German states prepare to discuss further measures over the weekend. Germany has seen a sharp increase in new COVID-19 infections in recent days. Yesterday there was a record number of 28 179 new cases. Meanwhile, the British Prime Minister Boris Johnson warned of a no-deal Brexit. Trade negotiations were extended until Sunday after Wednesday's negotiations ended with no breakthrough for a trade agreement. On a brighter note, European Union leaders have finally clinched an unprecedented €1.8tn budget and coronavirus recovery fund after Poland and Hungary lifted their veto.

US stocks are trading lower as uncertainty regarding a new stimulus package and increasing number of COVID-19 fatalities overshadowed positive vaccine news. House Speaker Nancy Pelosi suggested stimulus negations could extend beyond Christmas, but said it would be preferable to pass a bill sooner. Both sides cannot find agreement  on shielding companies from virus-related lawsuits, state and local stimulus, unemployment assistance and checks. On the pandemic front, a panel of experts formally recommended that the FDA authorize Pfizer and BioNTech’s coronavirus vaccine for emergency use. Also Canada became the second Western country to approve Pfizer's vaccine. Meanwhile US reported 2,768 COVID-19-related fatalities yesterday, a day after posting a record daily increase of 3,124, according Johns Hopkins University data.

US crude futures are trading 0.32% higher at $ 46.63 a barrel, while Brent contract fell 0.40% to $ 50.05. Elsewhere, gold futures rose 0.39% to $ 1,842.50 /oz, while silver is trading 0.27% near $ 24.00/oz.

GBPUSD – Sterling is the worst performing currency among majors as investors turned to safe-haven US dollar in the wake of surging COVID-19 infections, uncertainty over the timing of fiscal stimulus in the US, and the high probability for a no post-Brexit trade deal. Pair is currently testing strong support at 1.32 level which coincides with 200 SMA (red line). If sellers manage to close below that level then declines could deepen. However if buyers will manage to halt declines here, then upward impulse towards 1.3310 could be launched. Source: xStation5

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