Futures rise as vaccine progress fuels recovery hopes

Cornelia Mascio
Ноября 24, 2020

Spot gold fell sharply and is now down -1.81% at $1837.

After weeks of legal challenges to the election results, U.S. General Services Administration chief Emily Murphy wrote to Biden on Monday informing him the formal hand-over process could begin.

On Twitter, President Donald Trump said he was recommending that his team "do what needs to be done with regard to initial protocols".

Evidence of high efficacy rates in experimental vaccines lifted the benchmark S&P 500 to a record high earlier this month, although gains have since been capped by concerns around more lockdowns to contain a surge in infections.

Asia-Pacific shares outside Japan had ticked up 0.4%. Australia's S&P/ASX 200 was 1.26 percent stronger, touching its highest level in nearly nine months, with energy stocks leading the pack.

Japan's benchmark Nikkei 225 jumped 2.5% to 26,159.97 in afternoon trading. South Korea's Kospi added 0.3%, Hong Kong's Hang Seng climbed 0.5% and stocks in Shanghai added 0.2%. However, the leading stocks in China were divergent, down 0.6%, as investors booked profits after the recent strong gains.

Some analysts say a Biden presidency, which could mean more negotiation room for Washington and Beijing, would not make a big difference for China's equities market, as they expected little change in broad U.S. policy toward China.

"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 United States hopes to start the vaccination program in under three weeks", said Philip Shaw, chief economist at Investec in London. The Covid-19 shot developed by the University of Oxford and AstraZeneca Plc prevented a majority of people from getting the disease in a large trial, another promising development in the quest to end the pandemic, and the rollout could begin next month.

S&P 500 futures spent the majority of pre-US market trade in the green, boosted primarily by an increasingly optimistic feel regarding the prospect for a global economic recovery in 2021 on the back of further good vaccine news.

"The fact that we have a smoother transition between President-elect Biden and Trump is just another reason to think that the recovery as it is now playing out has one less risk to it", said IG Markets analyst Kyle Rodda.

"And the news of Yellen's possible nomination to the role of US Treasury Secretary potentially puts a very Fed-friendly uber-dove at the reins of fiscal policy".

The US greenback index touched its lowest since September 1 earlier than edging 0.214 % increased with the euro unchanged at Dollars 1.184.

U.S shares looked set to mimic gains in Europe and Asia, as Nasdaq futures rose 0.4%, Dow futures rose 0.7%, and USA e-mini futures for the S&P 500 were 0.6% higher at 3,576.

Brent crude futures rose almost 2% as traders eyed a recovery in crude demand due to the successful vaccine trials, while the euro edged up to 1.1864 as the dollar tested the bottom of a range it has been in for the last few months.

"Investors are clearly rallying around the narrative of a vaccine-fuelled economic reopening, to the point they're willing to look past the economic realities and potential downside risks that may lie ahead", said FXTM market analyst Han Tan.

U.S. crude advanced 1.28 percent to $43.61 per barrel and Brent was at $46.58, up 1.13 percent on Tuesday, while an index of commodity prices touched its highest since early March.

Gold continued to lose its shine too, falling to $1,826.3 an ounce having now dropped 10% this month.

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