Summary List Placement
Global stocks jumped on Monday, boosted by a newly positive COVID-19 vaccine backdrop and stronger industrial data from China.
Investors are eagerly anticipating results from vaccine candidates including Moderna, AstraZeneca, and Janssen.
“The road to full economic reopening is slow, but the ‘long vaccine’ trade remains live,” Axi’s chief market strategist said.
President Donald Trump plans to introduce fresh sanctions against China and promote hawkish government officials to senior roles before his term ends, according to Axios.
Visit Business Insider’s homepage for more stories.
Global stocks rose on Monday as investors were encouraged by more positive news on the COVID-19 vaccine front and strong factory data from China.
Futures tied to the Dow Jones, S&P 500, and Nasdaq rose between 0.5% and 0.9%.
Ugur Sahin, the CEO of Pfizer’s vaccine partner BioNTech, said COVID-19 will be reduced by about 50% following the vaccine rollout, and could result in a “dramatic reduction of the pandemic spread.”
Moderna is expected to soon release the results of its vaccine, called mRNA-1273. Dr. Anthony Fauci has said he would be surprised if the data is not similar to Pfizer’s.
A third vaccine being developed by Janssen, a subsidiary of Johnson & Johnson, will enter large-scale clinical trials in the UK on Monday. 6,000 British volunteers have signed up to participate in the Phase-3 trial.
Investors are also waiting on progress reports from AstraZeneca, which has partnered with Oxford University, said Connor Campbell, a financial analyst at SpreadEx.
‘The road to full economic reopening is slow, but the ‘long vaccine’ trade remains live,” Stephen Innes, chief global market strategist at Axi, said. “A risk to the reflationary implications of an impending rotation from technology to value is a pronounced bear-steepening in yield curves, led by US Treasuries.”
Read More: The manager of Rathbones’ $2.4 billion Ethical Bond Fund is beating her benchmark – and 95% of her peers. Here’s how she makes green investing work.
Chinese economic data encouraged Asian markets on Monday, adding to the perception that its economy continues to shake off the effects of COVID-19, Rabobank analysts said. Industrial production grew by 6.9% in October, compared to the same period last year, marking the largest increase in 2020 thanks to major improvements in every major sector.
China’s Shanghai Composite rose 1.1%, Japan’s Nikkei rose 2%, and Hong Kong’s Hang Seng rose 0.8%.
Before President Donald Trump’s term ends, he plans to introduce “a series of hardline policies” on China including fresh sanctions, restrictions, and the promotion of more hawkish government officials into senior roles, according to Axios.
“While there is a risk of escalation ahead of President-elect Joe Biden taking office, we expect a more conciliatory and multilateral approach from the incoming administration, reducing a major source of market instability during the Trump presidency,” Mark Haefele, who is chief investment officer at UBS Global Wealth Management, said.
Elsewhere in the UK, the FTSE 100 rose 0.7%. Britain now only has 45 days to go until the Brexit …read more
Source:: Businessinsider – Finance