The rush to develop treatments for Covid-19 is heating up, prompting investors to diversify bets in the healthcare sector and trade tensions between the U.S. and China are firmly back on the agenda. On the economic calendar, the weekly jobless claims report continues to be the main number to watch, given its timeliness. Federal Reserve Chairman Jerome Powell is to discuss the U.S. economy in an appearance on Friday and the Fed publishes its Beige Book on Wednesday. Meanwhile, the European Commission is to unveil its pandemic response plan and retail earnings are winding up. Here’s what you need to know to start your holiday shortened week.

• Covid-19 vaccine hunt heats up

Governments and investors are focusing their hopes on a vaccine as its unlikely economic activity can resume fully without one.