Markets were mixed on Tuesday.
The S&P 500 fell 1.4 percent but the STOXX Europe 600 rose 0.1 percent and the Nikkei 225 rose 0.5 percent.
US stocks fell after President Donald Trump instructed White House officials to halt negotiations on further coronavirus stimulus.
“Walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus, as is required by the Heroes Act,” said House Speaker Nancy Pelosi.
However, markets are still expecting stimulus eventually.
Jon Hill, senior fixed income strategist at BMP, said that a stimulus programme is still coming, just that “it will not occur until after the election”.
“Even after this news, the 10-year yields are higher than where they were yesterday morning,” noted Hill.
Dennis DeBusschere, quantitative strategist at Evercore ISI, suggested that “unwinding stimulus trades should not be taken too far”.
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