Brexit talks got nowhere. The market switched to the ECB meeting.

We can say that Ursula von der Leyen and Boris Johnson’s meeting had no luck. Yet again, the negotiations, like all the others before, ended with a promise to prolong them and the establishment of another "deadline". This time, December 13 will be considered that very last day when all issues can be resolved. The market is getting nervous. The yield on the credit market has fallen. The yield of the UK Gilts, reflecting uncertainty about a deal before the end of the year, decreased by 100 basis points to 0.256% over the week. Against similar US government papers (Treasuries), losses are substantial.

So far, three of the most controversial issues have not been resolved: disagreements over fishing rights, deal regulation, and fair competition rules for businesses. German Chancellor Angela Merkel warned that if the deal deviates from EU norms, it will be thwarted. And she also announced the readiness of the European Union to leave without an agreement with Britain.

Also, Johnson said that it was impossible to accept the conditions that the EU wants to impose on British business and fishing.

The result of the negotiations was the appreciation of the dollar across almost the entire spectrum of the market. But now investors will temporarily switch to the ECB meeting, which will be held in the midst of the European session. The market is awaiting the announcement of additional stimulus measures from the regulator in the amount of €500 billion.

Market indicators

Stock indices finished trading in a multidirectional manner:

S&P 500 (F) 3.669.12 -3.38 -0.09%

Dow Jones 30.068.81 -105.07 -0.35%

DAX 13.399.75 +121.26 +0.91%

FTSE 100 6.564.29 +5.47 +0.08%

USD Index 91.083 +0.20%

• – Results of the ECB meeting at 15:45 (GMT+2).

by JustMarkets, 2020.12.10

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.