Could the New Strain Cause a Correction?

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What’s in Today’s Report:

  • Could the New Coronavirus Strain Cause a Correction
  • Gold Failure (Chart)

U.S. equity futures are little changed after a mixed night of overseas trading as investors digest the emergence of a new strain of the coronavirus in the U.K. against the passage of a fresh stimulus package overnight.

Congress passed a COVID-19 relief bill totaling $892B late Monday which is being generally well received by markets today despite the fact that it was somewhat disappointing vs. lofty market expectations.

An executive from BioNTech stated that their vaccine with Pfizer should work against the new strand of the coronavirus in the U.K., which helped ease some of the concerns linked to the new outbreak in the U.K.

Today, there are two notable economic reports to watch: Final Q3 GDP (E: 33.1%) and Consumer Confidence (E: 97.0).

The market will likely be more sensitive to the latter report as it is much more timely being a December release however focus will also remain on the latest COVID-19 headlines as an acceleration in the spread of the new strain in the U.K. or stricter lockdown measures could again weigh on risk assets in thinning holiday trade.