Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Vaccine progress injects optimism into global stocks

Economy Nov 10, 2020 00:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People wearing protective face masks, following an outbreak of the coronavirus, walk past a screen showing Nikkei index, outside a brokerage in Tokyo

By Lawrence Delevingne

BOSTON (Reuters) - Global stocks and oil jumped and Treasuries sold off on Monday as progress in the development of a coronavirus vaccine lifted investor confidence in a world economic recovery.

"Preliminary trials have caused markets to come alive, not that they needed much encouragement," Chris Weston, Pepperstone's Melbourne-based head of research, wrote in a note Monday.

Pfizer Inc (N:PFE) said its COVID-19 vaccine, developed with German partner BioNTech SE (O:BNTX), was more than 90% effective in preventing infection, marking the first successful results from a large-scale clinical trial.

On Wall Street, the Dow Jones Industrial Average (DJI) rose 2.95%, the S&P 500 (SPX) gained 1.17% while the Nasdaq Composite (IXIC) dropped 1.53%. E-mini futures for the S&P 500 rose 0.47%.

Japan's Nikkei 225 (N225) rose 1.5% to a 29-year high in early trade and Australia's S&P/ASX 200 (AXJO) rose 1.4%. Hong Kong's Hang Seng index futures (HSI) (HSIc1) rose 1.85%. MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) closed 0.12% higher.

Pfizer's announcement jolted European shares to an eight-month high, building on expectations of more stable trade policies following the U.S. election.

While stocks have also rallied on the assumption that Democrat Joe Biden would be the next U.S. President, the top Republican in U.S. Congress on Monday did not acknowledge Biden as president-elect, raising concerns about a rough transition of power.

Senator Mitch McConnell said in a speech that President Donald Trump was well within his rights to look into charges of election "irregularities" but did not offer any evidence of fraud.

The dollar index (DXY) rose 0.65%, but Joseph Capurso, a strategist with Commonwealth Bank of Australia in Sydney, expects the move to be short-lived.

"As a counter cyclical currency, the USD falls against most currencies as the global economy improves, with the exception of the JPY," Capurso wrote. He noted modeling suggested the dollar was "significantly undervalued" against the yen.

The Australian dollar fell 0.07% versus the greenback at $0.728.

The Japanese yen strengthened 0.25% versus the greenback to 105.09 per dollar, while Sterling was last trading at $1.3171, up 0.06% on the day.

The vaccine news also sent long-dated U.S. Treasury yields sky-rocketing in their biggest one-day jump since March. The yield curve, an indication of risk appetite, hit its steepest level since March.

Benchmark 10-year notes (US10YT=RR) last fell 31/32 in price to yield 0.9235%, from 0.82% late on Friday.

The CBOE Market Volatility index (VIX), a barometer of investor anxiety, hit its lowest closing level since late August.

Oil prices surged, posting their biggest daily percentage gain in more than five months as the vaccine news and an OPEC output deal fueled optimism about rebounding demand.

Gold prices slumped as investors pivoted away from the safe-haven metal in favor of riskier assets.

Spot gold added 0.4% to $1,868.68 an ounce.

Vaccine progress injects optimism into global stocks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Nov 11, 2020 9:29
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake pandemic, people!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email