Financial markets soared in a relief-fuelled global rally as clarity emerged on the two concerns that have gnawed on investors for months: The US presidential election and the coronavirus.
Global equities rocketed higher after pharmaceutical giant Pfizer said early data showed its coronavirus vaccine appeared 90% effective, a better-than-expected figure, even as gold prices dropped below $1,900 an ounce, copper rates hit a two-year high and oil prices soared by 10% intraday.
On Wall Street, the S&P 500 rose more than 3% in early trading, gains that put it above its record from early September. The Dow Jones jumped about 5% in the day. Pfizer’s shares too rose 8% in early trading, while BioNTech American depositary receipts were up about 19%. The news added more than $500 billion to the value of the MSCI All Country World Index, which rose 0.5% on Monday, surpassing an intraday high set on September 3.
The benchmark Stoxx Europe 600 index surged 4%, while the FTSE 100 in the UK was nearly 5% up. In Asian markets, which closed before Pfizer announced its news, the Nikkei 225 in Japan ended the day 2% stronger, and Hong Kong’s Hang Seng finished 1% higher.
Industrial metals, equities and oil prices all jumped following the announcement, while gold plunged as much as 4.2% to below its 100-day moving average at one point, a key technical level that may have accelerated its decline. The precious metal has now erased all its gains since the US election, when hopes for more fiscal stimulus helped prices break out of a narrow trading range.
Gold “is an asset that has been attracting investors due to an outlook for stimulus and rock-bottom low rates,” said Ole Hansen, head of commodity strategy at Saxo Bank. “A potential vaccine reduces the need for economic stimulus as economies can reopen.”
Copper and other base metals including zinc and nickel extended gains seen earlier as investors weighed potential shifts in US trade and energy policy under a Biden administration. Although traders expect Trump-era policies such as steel and aluminium import tariffs won’t go away any time soon, President-elect Joe Biden may seek to de-escalate the broader trade war with China, the top industrial commodities user.
The Link Lonk
November 10, 2020 at 08:43AM
https://ift.tt/36p4dpn
Booster shot for global markts: Biden win and vaccine news - Times of India
https://ift.tt/2DVP6sH
No comments:
Post a Comment