Stock futures point to modest gains
U.S. stocks were set to for a slightly positive start heading into the Christmas break on Thursday, fueled by optimism over the prospects for more fiscal support for the economy.
There were initial concerns that President Donald Trump might veto the coronavirus relief bill, but traders shrugged off those fears.
By 5:50 a.m. ET, futures linked to the blue-chip Dow advanced 82 points, or 0.27% to 30,116. Those tied to the S&P 500 gained 10.12 points, or 0.27% to 3,691.62 while the tech-heavy Nasdaq 100 futures were up 16.25 points, or 0.13% to 12,667.50.
The stock market will close early today, with the Nasdaq and New York Stock Exchange scheduled to end close at 1:00 p.m. ET. On Christmas Day, both the Nasdaq and New York Stock Exchange will be closed in observance of the holiday.
Post-Brexit deal could be confirmed today
The United Kingdom and the European Union are reportedly on the verge of agreeing on a post-Brexit trade deal today.
Reuters quoted Irish Foreign Minister Simon Coveney saying that a last-minute issue related to fishing has delayed the deal, but an announcement is expected to be made later in the day.
UK cabinet ministers also reportedly held a conference call on Wednesday to discuss a deal with the EU.
According to the BBC, UK Prime Minister Boris Johnson will speak to the EU leader Ursula von der Leyen and will hold a news conference later.
Both sides trying to reach an agreement before 31 December, when the Brexit transition period ends. The announcement of a deal could provide yet another boost to stocks as traders head into year-end.
Alibaba tumbles after anti-monopoly investigation by Chinese authorities
Shares of Alibaba (NYSE: BABA) slumped in pre-market trade Thursday following reports that the Chinese regulators have launched an anti-monopoly probe against the e-commerce titan and will summon affiliate Ant Group over financial regulations.
Sources told CNBC that China’s State Administration for Market Regulation is investigating the company’s “choose one of two” policy that requires its business partners to avoid dealing with rivals.
Separately, the People’s Bank of China also plans to hold a meeting with Ant Group in the coming days.
The bank said in a statement that the meeting would “guide Ant Group to implement financial supervision, fair competition and protect the legitimate rights and interests of consumers.”
The investigation comes just a month after China issued draft laws aimed at preventing monopolistic practices by tech companies, marking Beijing’s first serious antitrust action against the sector.
As of writing, Alibaba stock was marked $18.28, or 7.14% lower to $237.90 a share in pre-market trade.
