Hat tip to Rabobank for their description of yesterday’s session - “Tidings of comfort and joy”.
Those tidings consisted of more positive news on the coronavirus vaccine front, on Brexit talks and on a possible bipartisan U.S. spending package proposal of almost $1 trillion.
Some of the air has been let out today, with U.S. and European equities opening a touch lower and Treasury yields flat after yesterday's 8 basis-point rise. Inflation-adjusted U.S. 10-year yields are around 1.8%, the highest since May 2019.
But the mood overall remains buoyant -- not least led by massive merger and IPO deals. The latest is Salesforce.com's deal to buy workplace messaging app Slack in a $27.7 billion deal, coming on top of an even bigger plan by S&P Global on Monday to buy IHS Markit for $44 billion.
More stimulus is on the way too -- aside from the U.S. package, the Bank of Japan's deputy governor said the bank could extend a corporate funding facility beyond March.
Finally, news from Britain -- it became the first country in the world to approve the Pfizer-BioNTech vaccine with plans to roll it out from next week.
On Brexit, EU chief Brexit negotiator Barnier is to update EU representatives at a briefing - sterling is hovering around $1.34 on news talks have entered the so-called tunnel stage.
Here are some corporate events and data that could drive markets on Wednesday:
- Debenhams to shut all its shops, marking the end of its 242-year run in UK retail
- Bitcoin takes another shot at scaling $20,000
- U.S. Federal Reserve Releases Beige Book
- ECB's Philip Lane to speak at the online Thomson Reuters Global Investment Summit
Reporting by Sujata Rao and Thyagaraju Adinarayan
Our Standards: The Thomson Reuters Trust Principles.