Asian Stock Market: Drifts lower amid tiring talks on Brexit, US stimulus

Asian equities cool down from record high as major risk events overstretch.
EU-UK stays far apart on Brexit, will wait till Sunday to announce future of Brexit talks.
US policymakers jostle over the details of covid aid-package, virus-led death toll jumped to record high above 3,000 in America.

Asian shares print mild losses while easing from the record highs, flashed the previous day, amid tiring talks over key risk events like Brexit and the US coronavirus (COVID-19) stimulus. Also weighing on the risks could be the US-China tussle and a light calendar that awaits ECB and US approval of the covid vaccine.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 0.40% whereas Japan’s Nikkei and New Zealand’s NZX 50 are on the same line during early Thursday. Australia’s ASX 200 drops near 0.70% as a tussle between Canberra and Beijing extends.

The dinner date between the European Union (EU) and the UK policymakers in Brussels ended without any decision as both the parties stay far apart on Brexit's outlook. On the other hand, US stimulus negotiations also drag even as the policymakers are mostly done with total outlay, around $900 billion.

Elsewhere, China announced temporary anti-subsidy measures on Aussie wine at a time when there is no sign of renewing the Australia-China five year trade pact. It should also be noted that the surge in the US COVID-19 infections and death toll keep market players on the edge especially when the UK, Canada and Bahrain already have the cure approved for emergency use.

Against these backdrops, S&P 500 Futures struggle for a clear direction while the US 10-year Treasury yields stop the upside momentum around .93%.

Moving on, monetary policy meeting by the European Central Bank (ECB) and the US Food and Drug Administration’s (FDA) approval of Pfizer’s covid vaccine will be the key events of the day. Additionally, the US inflation data and headlines concerning Brexit, the stimulus will offer extra direction to market players.

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