🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

GLOBAL MARKETS-Vaccine progress lift stocks, dollar still sickly

Published 23/11/2020, 10:53
© Reuters.
EUR/USD
-
XAU/USD
-
AXJO
-
AZN
-
DX
-
GC
-
LCO
-
CL
-
KS11
-
STOXX
-
SETI
-
MIAPJ0000PUS
-
MRNA
-
BNTX
-

* AstraZeneca vaccine returns stocks to February levels
* Australia eases lockdowns, U.S. vaccines in sight
* 2020 asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
*

By Lawrence White and Andrew Galbraith
LONDON/SHANGHAI, Nov 23 (Reuters) - Shares and oil prices
rose on Monday while the dollar fell as investors pinned hopes
for economic revival on coronavirus vaccines, even as the world
contended with surging case numbers and delays to fresh U.S.
stimulus.
The STOXX index of Europe's 600 largest shares .STOXX rose
0.5% to its highest since February after AstraZeneca AZN.L
become the latest major drugmaker to say its vaccine for the
virus could be around 90% effective. Brent crude futures LCOc1 rose nearly 2% as traders eyed a
recovery in crude demand due to the successful vaccine trials,
while the euro edged up to 1.1864 EUR= as the dollar tested
the bottom of a range it has been in for the last few months.
/FRX
The vaccine developed by AstraZeneca and Oxford University
is the third major trial to report success after U.S.-based
Moderna Inc MRNA.O and Pfizer Inc PFE.N with Germany's
BioNTech SE 22UAy.F BNTX.O , sending pandemic-weary investors
to take on risk in hopes of a swift economic recovery.
Their optimism also comes after a top official of the U.S.
government's vaccine development effort said Sunday that the
first vaccines could be given to U.S. healthcare workers and
others recommended by mid-December. Despite the backdrop of accelerating COVID-19 infections in
the United States, the forecast helped to raise hopes that
lockdowns that have paralysed the global economy could be
nearing an end.
"Today's vaccine news is positive, but it is only partly
responsible for the rally in stock markets this morning, which
is also being driven by the news that the U.S. hopes to start
the vaccination program in under three weeks," said Philip Shaw,
chief economist at Investec in London.
The rally showed investors are willing to look past the grim
U.S. case numbers -- cases topped 12 million over the weekend --
and weak European economic data released on Monday.
IHS Markit's flash composite Purchasing Managers' Index,
which tracks the manufacturing and services sectors that
together account for more than two-thirds of the German economy,
edged down to 52.0 from 55.0.
The European share rally took the region's November gains to
15% and followed another record high for Asian equities even
before the announcement of latest vaccine news.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS looked set to end the day 0.8% higher.
Australian shares .AXJO gained 0.3% as the country eased
some COVID-19 restrictions. Most of the country has seen no new
community infections or deaths in several weeks. Chinese bluechips had finished 1% higher, Seoul's KOPSI
climbed 1.9% .KS11 and Bangkok jumped 2.2% .SETI to hit a
five-month high.

GOLD LOSING ITS SHINE
Analysts said the gains belied some uncertainty as monetary
and fiscal help for the U.S. economy remained elusive.
U.S. Treasury Secretary Steven Mnuchin said last week that
key pandemic lending programs at the Federal Reserve would
expire on Dec. 31, putting the outgoing Trump administration at
odds with the central bank and potentially adding stress to the
economy. "Discussion is only beginning and may take some time if the
recent partisan disagreements over the composition and magnitude
of fiscal spending are any indication," analysts at ANZ said in
a note.
U.S. e-mini futures for the S&P 500 EScv1 were 0.7% higher
at 3,577 in Europe. Wall Street's main markets had dropped 0.4%
to 0.8% on Friday on the combination of aid doubts and the
country's surging coronavirus infection rates.
With the vaccine news and dollar index =USD , which tracks
the dollar against a basket of six major rivals, down to 92.264,
commodity markets were still bullish, with traders optimistic
about a recovery in crude demand pushing oil higher.
Brent crude futures LCOc1 rose 63 cents, or 1.4%, to
$45.59 a barrel in London. West Texas Intermediate crude CLc1
gained 49 cents, or 1.2%, to $42.91 a barrel. Both benchmarks
jumped 5% last week.
Safe-haven gold XAU= , meanwhile, drifted at $1,872 per
ounce, having lost almost 10% since peaking in earlier August.
GOL/
"Positive sentiment continues to be driven by the recent
good news about the efficacy of coronavirus vaccines in
development and the expectation that the OPEC+ meeting at the
end of this month could see the group extend current cuts by
three to six 6 months," said Stephen Innes, chief global markets
Strategist at Axi, a financial services firm.



<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates in 2020 http://tmsnrt.rs/2egbfVh
2020 asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.