It is starting to get a bit ugly
For the DAX, the recent rally seems to have met a pause as it encounters resistance from the 3 September high. There is now some support from the 13 November low at 13,004 but the 100-day moving average (red line) will be the key level to watch @

The market mood is tilted towards being more risk averse this morning
European indices are mostly down by over 1% on the day, with the DAX nearing a decline of 1.7% currently as US futures are also seen slumping.

London reported 4,144 new virus cases today
That compares with the 2,550 new cases reported in the day before, with 34 deaths also reported in London hospitals. A Tier 3 lockdown for London will be a blow to the UK economy and add misery to the pound should Brexit prospects stay more bleak.

EUR/GBP climbs above 0.9100 on the session
The uneasiness surrounding the Brexit situation is continuing to weigh on the pound, as any positive news – if there will be any that is – is unlikely to come about in the next two days and possibly only after the weekend.

Bloomberg reports, citing officials with knowledge of the discussions
As such, that is leading to a no-deal scenario being the likely outcome but still, both sides are working to spend the coming days in search of a breakthrough.

The ECB will announce its „recalibration“ later today
I outlined what to expect later today but in summary, we are almost certainly going to see an expansion of PEPP stimulus by at least €500 billion and likely to June 2022 i.e. 12-month extension. Adding to that will be the enhancing of TLTRO terms.

Nasdaq futures turn flat while S&P 500 futures are up 0.2% now
After the pullback yesterday, the risk mood is seeing more calm in general so far today as investors are also still holding out hope for US stimulus to pull through.

Comments by Irish foreign minister, Simon Coveney
– But the fact there were no signs of compromise last night is a problem
– The gap is still very wide
– I do believe Boris Johnson wants a deal
More Brexit ramblings on the day. This doesn’t really add much to the current picture. The pound continues to keep weaker

Latest data from the Mortgage Bankers Association for the week ending 4 December 2020
– -0.6%
The drop last week largely stems from a decline in purchase activity, despite the long-term mortgage rate falling by another 2 bps to a record survey low.

Comments by Russian energy minister, Alexander Novak