Most stocks, US futures drop as coronavirus cases increase

Bloomberg

Most stocks dropped and US futures retreated as investors focused on swelling coronavirus infections and tougher restrictions.
After global equities hit an all-time high last week, sentiment has softened this week in the face of a worsening virus trends, with Hong Kong shutting gyms and New York
warning that indoor dining might soon close. S&P 500 futures slipped 0.3% and the MSCI Asia Pacific Index dropped 0.2 percent.
In Europe, the Stoxx 600 Index was little changed after the UK started the first immunisation campaign in the West.
The pound weakened for a third day as optimism for a breakthrough in Brexit talks continues to fade. UK Prime Minister Boris Johnson is planning to head to Brussels within days for urgent discussions with European Commission President Ursula von der Leyen in hopes of brokering a compromise.
“Signs that traders have trimmed risk are there, with some focus on US Covid trends,” Chris Weston, head of research at Pepperstone Group Ltd, wrote in a note. Renewed focus on trade tensions and the ongoing Brexit negotiations, suggests “this selective mindset is just the market sitting on its hands waiting for the next shoe to drop.”
The dollar held gains
against its major peers. Oil retreated and gold was steady after jumping more than 1% on December 07.
Thursday brings the European Central Bank policy decision and a press briefing from Christine Lagarde. Economists widely expect the central bank to increase and extend its pandemic bond-buying program.
The US Food and Drug
Administration will meet to discuss the vaccine made by Pfizer/BioNTech on Thursday. If the FDA authorises emergency use, Health & Human Services Secretary Alex Azar said vaccine distribution could begin within 24 hours.
Futures on the S&P 500 Index declined 0.3% as of 8:13 am in London. The Stoxx Europe 600 Index was little changed. The MSCI Asia Pacific Index declined 0.2%. The MSCI Emerging Market Index declined 0.3%.
The Bloomberg Dollar Spot Index rose 0.1%. The euro dipped 0.1% to $1.2098. The British pound sank 0.4% to $1.3327. The onshore yuan weakened 0.1% to 6.538 per dollar. The Japanese yen was little changed at 104.09 per dollar.
The yield on 10-year Treasuries dipped less than one basis point to 0.92%. The yield on two-year Treasuries was unchanged at 0.14%. Germany’s 10-year yield sank one basis point to -0.60%. Britain’s 10-year yield fell one basis point to 0.273%. Japan’s 10-year yield declined less than one basis point to 0.019%.
West Texas Intermediate crude dipped 1% to $45.32 a barrel. Brent crude sank 1%
to $48.32 a barrel. Gold strengthened 0.1% to $1,863.90 an ounce.