World news – African Union – Vaccine Advance injects optimism into global stocks

Boston (Reuters) – Global stocks and oil jumped and Treasury bonds were sold on Monday as progress in developing a coronavirus vaccine boosted investor confidence in the recovery of the global economy

Chris Weston, head of research at Melbourne-based Pepperstone, wrote in a note Monday: “Initial experiments have brought markets back to life, and they didn’t need much encouragement.”

Pfizer Inc said the COVID-19 vaccine, which was developed with German partner BioNTech SE, 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 gained 295%, the S&P 500 gained 117% while the Nasdaq Composite Index declined 153%, the E-mini S&P 500 futures rose by 047%

Japan’s Nikkei 225 Index rose 15% to a 29-year high in early trade and Australian S&P / ASX 200 rose 14% Hong Kong’s Hang Seng futures rose 185% MSCI’s broadest Asia-Pacific index outside of Japan closed 012% higher

Pfizer’s announcement pushed European stocks to an eight-month high, based on expectations of more stable trade policies following the UX election.

While stocks also rose on the assumption that Democrat Joe Biden will be the next president, the top Republican in Yos, Congress on Monday did not recognize Biden as the elected president, raising concerns about an approximate transfer of power.

Senator Mitch McConnell said in a speech that President Donald Trump has the right to hear charges of electoral « irregularities », but has not provided any evidence of fraud.

The dollar index is up 065%, but Joseph Capurso, a strategist at the Commonwealth Bank of Australia in Sydney, expects the move to be short-lived.

Capurso wrote: « As a countercyclical currency, the US dollar depreciates against most currencies as the global economy improves, except for the Japanese yen. » He noted that the modeling indicates that the dollar is « undervalued » against the yen.

The Japanese yen strengthened 025% against the dollar to 10509 per dollar, while the British pound was last traded at $ 1 3171, 006% higher for the day

The vaccine news also sent a message to the Treasury Department achieving a missile jump in its biggest single-day jump since March. The yield curve, an indicator of risk appetite, has reached its highest since March

The prices of the 10-year benchmark last fell 31/32 to yield zero 9,235% from 082% late Friday

The CBOE Market Volatility Index, a measure of investor anxiety, recorded its lowest closing level since late August

Oil prices rose, achieving the largest daily percentage gains in more than five months, as news of the vaccine and the OPEC production agreement fueled optimism about the recovery in demand

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

Vaccine, Stocks, Financial, Investor, Coronavirus