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Here is what you need to know on Thursday, October 8:

Markets remain cautiously optimistic that further fiscal stimulus comes from the US. Official talks are off but the president is offering ideas. Politics are having a growing role in shaping the reactions. 

President Donald Trump is looking for a minimal deal with Democrats after abruptly cutting off talks on Tuesday. Dems seem unlikely to agree to a small relief package and want $2.2 trillion. Investors remained optimistic on Wednesday and further developments are awaited.

Gold seems especially dependent on additional funds from the government. The safe-haven dollar was under pressure on Wednesday and has since stabilized. 

More Who will be the next president? Markets seem to care more about Congress’ actions (for now

Vice-President Mke Pence and Senator Kamala Harris clashed in the VP debate in Utah. Both candidates exchanged jabs but held a civilized debate on the topics at stake rather than personal attacks. Given the old age of Trump and rival Joe Biden, their performance is of high importance. 

Recent opinion polls have shown an expanding gap for Biden over Trump, nearing an average of 10% in national polls and solid surveys for the Democrat in the critical battleground states. One model shows an 84% chance and another 91% for Biden.

The Federal Reserve’s meeting minutes expressed satisfaction from the recovery in the third quarter but also added that they assume additional fiscal stimulus is coming. Earlier this week, officials reiterated the need for more support. 

Weekly jobless claims are set to show another decline in applications. The recovery is ongoing but showing signs of slowing down. 

See US Initial Jobless Claims Preview: Unemployment filing and payrolls reverse in September

NZD/USD has been under pressure after an official in the Reserve Bank of New Zealand said that the institution is “actively working” on negative interest rates and a funding-for-lending program. 

Brexit: The UK is reportedly preparing to abandon talks if no agreement on October 15. The EU and the UK remain at odds over fisheries and state aid. Negotiations continue and choppy trading is likely to continue in response to headlines. 

The European Central Bank also publishes its meeting minutes, which may shed light on the divisions regarding expanding the bond-buying scheme. President Christine Lagarde said the recovery is incomplete and uncertain earlier in the week. Coronavirus cases continue rising in the old continent.

WTI Oil has been flirting with the $40 level after Crude Oil Inventories showed a minor increase of 0.5 million barrels, worse than expected. 

Top cryptocurrencies have been consolidating in familiar ranges, with Bitcoin below $11,000.

See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included