Risk aversion hit global markets after Reuters reported
Washington was preparing to impose sanctions on some Chinese
officials over their alleged role in Beijing's disqualification
of elected opposition legislators in Hong Kong.
China said it firmly opposed U.S. interference in its domestic
affairs, in response to the report.
Meanwhile, talks aimed at delivering fresh coronavirus aid
gathered momentum in the U.S. Congress on Friday, as a
bipartisan group of lawmakers worked to put the finishing
touches on a new $908 billion bill.
After months of deadlocked negotiations between Republicans and
Democrats, pressure has mounted on policymakers to help people
and businesses hit hard by the surging pandemic, especially
after a set of weak labor market indicators.
The two parties also face a Dec. 11 deadline to approve an
omnibus spending bill to prevent a government shutdown.
Shares of major U.S. banks including Morgan Stanley, Wells Fargo
& Co, JPMorgan & Chase Co, Citigroup Inc and Goldman Sachs Group
Inc fell between 0.4% and 1% in premarket trading.
Promising vaccine updates from major drugmakers has however
raised investor hopes for an economic recovery next year and
overshadowed worries over a surge in U.S. infections, powering
Wall Street's main indexes to record highs recently.
At 6:31 a.m. ET, Dow e-minis were down 118 points, or 0.39%, S&P
500 e-minis were down 14.25 points, or 0.39%, and Nasdaq 100
e-minis were down 6.5 points, or 0.05%.
Pfizer Inc rose 0.4% after a top Indian government health
adviser said the drugmaker applied for emergency use
authorization of its COVID-19 vaccine in the country.
A U.S. health advisory panel also meets on Thursday to discuss
whether to recommend emergency use authorization of a the
vaccine developed by Pfizer with German partner BioNTech SE.
Cisco Systems Inc edged 0.5% lower after the company agreed to
buy London-based cloud communications software company IMImobile
in a deal valued at about $730 million, including debt.
(Reporting by Shriya Ramakrishnan and Shreyashi Sanyal in
Bengaluru; Editing by Shounak Dasgupta)
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