This week, the markets will follow all of the latest developments related to the global pandemic, but be keenly focused on the upcoming Brexit deadline and the beginning of third-quarter earnings reporting in the U.S.
The British government has set a deadline for a final outline of a Brexit deal with the European Union later this week. The U.K. has stated that if the deadline is missed, it could walk away from talks.
Additionally, U.S. corporate earnings start to pick up pace with a focus on big banks and financial institutions, providing insight into the performance of the overall economy and health of individual companies.
The next few weeks have the potential to be choppy going into the election, but hope for a stimulus deal either before or after this pivotal event should keep a floor under equity prices. The same forces also put pressure on long-maturity Treasury yields to move higher.
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