U.S. equity futures edged lower along with Asian stocks and the dollar climbed as talks in Washington once again failed to yield a bipartisan agreement on fresh steps to alleviate the impact of the pandemic.

S&P 500 contracts dipped after the House of Representatives passed a $2.2 trillion Democrat-only fiscal stimulus package that Republicans reject. Separately, President Donald Trump said he’s recently been tested for Covid-19 and is awaiting the result after Hope Hicks, a close aide, tested positive.

In Japan, stocks erased initial gains after trading on the Tokyo Stock Exchange resumed following Thursday’s outage. Holiday closures in other major Asian markets may make for a subdued equity trading session ahead of the monthly U.S. payrolls data later Friday.

Markets in China, Hong Kong, Taiwan, India and South Korea are shut Friday for holidays. Oil fell on concerns of oversupply. Treasury yields slipped. The offshore yuan edged back from its strongest level since May 2019.

Global equities have struggled since reaching a peak in September, leaving investors looking for the next market catalysts. All eyes turn later Friday to the American September employment report, the last before the November U.S. election. Thousands of job cuts this week showed how firms are still wrestling with readjustments needed to survive in the pandemic era as virus cases continue to climb.

“The risks to the rally are real,” Joanne Feeney, partner at Advisors Capital Management LLC, said on Bloomberg TV. “What’s very unusual is that there is a lot more near-term risk at the moment than longer term.”

U.S. House Speaker Nancy Pelosi said there are still major differences to be bridged in the negotiations over a fiscal stimulus package with Treasury Secretary Steven Mnuchin.

These are the main moves in markets:

Stocks

  • S&P 500 futures fell 0.4% as of 12:10 p.m. in Tokyo. The index rose 0.5% on Thursday.
  • Japan’s Topix index retreated less than 0.1%.
  • Australia’s S&P/ASX 200 Index declined 0.7%.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.2%.
  • The yen was at 105.64 per dollar.
  • The offshore yuan dropped 0.3% to 6.7716 per dollar.
  • The euro bought $1.1719.

Bonds

  • The yield on 10-year Treasuries was at 0.67%.
  • Australia’s 10-year yield dropped to 0.84%.

Commodities

  • West Texas Intermediate crude fell to $38.14 a barrel, down 1.5%.
  • Gold slid 0.7% to $1,893.08 an ounce.



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