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Good morning. Stocks are down again amid a focus on virus restrictions and calls for added economic stimulus. Here's what's moving markets.

Down Again

U.S. shares dropped, with some citing Federal Reserve board members' pleas for added fiscal stimulus as the latest trigger, amid a backdrop of growing Covid-19 infections around the world. The S&P 500 fell the most in two weeks, a sign that investors are becoming more downbeat on prospects for a new aid package. Many of the biggest individual moves were on the tech-heavy Nasdaq, with Tesla Inc. losing 10% following an anticlimactic Battery Day event Tuesday and FAANGs also dipping. Get ready for a down day here too, with European futures following Asia's lead lower.

More Restrictions 

France added to the growing list of countries to tighten restrictions to curb the spread of the coronavirus. Health Minister Olivier Veran announced bars and restaurants in Marseilles and Aix-en-Provence will shut down while in Paris gatherings of more than 10 people will be banned and pubs will have to close early. Like in the U.K., people were urged to work from home as much as possible. News from Asia was more optimistic, though, as China eased restrictions on some foreigners' entry into the country, almost six months after it nearly sealed its borders.

Vaccine Politics

President Donald Trump signalled he could overrule any tightening of U.S. rules for the emergency clearance of a coronavirus vaccine, a move that could increase concerns that the race to find a shot is being politicized ahead of the presidential election. The Food and Drug Administration is expected to soon issue final guidelines, with regulators and drugmakers vowing to adhere to science, not politics, in deciding when a vaccine is ready. Elsewhere, the U.K. government is considering carrying out the first studies that would deliberately expose healthy people to the illness.

Record Spoofing Penalty

JPMorgan Chase & Co. is poised to pay close to $1 billion to resolve market manipulation investigations by U.S. authorities into its trading of metals futures and Treasury securities, according to three people with knowledge of the matter. The potential record for a settlement involving alleged spoofing could be announced as soon as this week, said the people. Spoofing typically involves flooding derivatives markets with orders that traders don't intend to execute to trick others into moving prices in a desired direction.

Coming Up…

Stimulus is on the agenda here as well, with Euro-zone banks gearing up for another dose of ultra-cheap funding at this week's
instalment of targeted loans, known as TLTROs. Meanwhile, U.K. Chancellor Rishi Sunak will set out a new crisis plan to protect jobs. Elsewhere, Turkey and Norway are expected to announce unchanged interest rates, while U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify on virus aid again. London's red bus operator The Go-Ahead Group Plc, movie theatre company Cineworld Group Plc and automotive supplier Hella GmbH provide earnings updates.

What We've Been Reading

This is what's caught our eye over the past 24 hours. 

And finally, here's what Cormac Mullen is interested in this morning

We may have moved to a Lockdown Lite strategy in Europe to deal with the current virus wave but that's not giving the same boost to stay-at-home stocks that the heavy approach did earlier in the year. A basket of European stocks chosen by SocGen strategists that benefit from home work and play -- food delivery, online entertainment, communication and household product companies -- hasn't done that much better than the market over the last three months. The stay-at-home portfolio is up about 2% since late June, basically in line with the 1% rise in the Stoxx 600. That could suggest traders have moved on from the virus as a key driver of the market, or that investors are having second thoughts about the valuations they are prepared to pay. And with death rates running at only a small fraction of the levels last spring despite surging infections in France, Spain, the U.K. and other countries -- and the fact we are hopefully closer to a vaccine -- there is not the same level of uncertainty in the market that drove those stocks initially higher. Still, the basket has more than proven its worth this year, having risen over 2%, compared to the broader market which remains down about 14%. 

Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. 

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