Here is what you need to know on Thursday, October 22:
Concerns about foreign intervention in the US elections have weighed on the market mood, allowing the dollar to recover after Wednesday's losses. Intense Brexit talks resume in London, boosting the pound. Tensions are mounting ahead of the final presidential debate. Jobless claims are eyed.
The FBI announced that Russia and Iran obtained US voter registration files and sent threats to voters. While officials have said that election infrastructure remain solid, concerns about a further complication of US elections and a rising chance disputes have pushed stocks and gold lower, while the dollar is consolidating its losses.
President Donald Trump and challenger Joe Biden will clash in the final debate late on Thursday. Recent national and state polls have been pointing to some tightening, yet the Democratic candidate remains in the lead. 12 days ahead of Election Day, around 44 million have already voted, around 32% of all votes counted in 2016.
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Fiscal stimulus: House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have reported additional progress in talks with Pelosi saying they could "put pen to paper." On the other hand, Senate Republicans seem to be pushing for legislation to pass only after the elections. Investors remain hopeful for a deal in its current form, or a larger package if Dems win full control.
US Initial Jobless Claims may be of greater interest than usual on Thursday, after jumping to 898,000 in the previous week. The upcoming data is for the week ending October 16, when Non-Farm Payrolls surveys are held.
Brexit: Chief EU Negotiator Michel Barnier is leading a large delegation to London, to resume and intensify Brexit talks. UK Prime Minister Boris Johnson returned to the negotiating table five days after abandoning it, now aiming to clinch an accord by mid-November. GBP/USD soared on Wednesday and has been holding onto its gains.
Eurozone coronavirus cases continue rising, with more authorities slapping restrictions to spread the disease. Spain's infections surpassed one million, while Germany's Health Minister Jens Spahn also tested positive. European Central Bank member Fabio Panetta may comment on the economic implications in a speech on Thursday.
Cryptocurrencies: Bitcoin has been extending its rally, hitting $12,800 at the time of writing. Ethereum is near $400.
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