[ad_1]
LONDON (Reuters) – Global equities remained on track for their best month of life on Friday as recent vaccine advances, Joe Biden’s victory in the US presidential election, hopes for further stimulus, a commodity boom and a weak dollar all boosted morale.
European markets have been cautious ahead of a barrage of economic data and as questions emerged over AstraZeneca’s COVID-19 vaccine trial data, but that wasn’t going to derail an unforgettable November.
Major German, French, Italian and Spanish stock exchanges all slashed gains and government bond yields remained low after the European Central Bank raised expectations for further stimulus next month.
London’s FTSE was slightly lower with some last-minute Brexit nerves, but with Wall Street showing a rise after Thanksgiving, MSCI’s main global index was preparing for another historic high.
“The sense of risk is reasonable because we have vaccines and easy money,” said Kit Juckes, Societe Generale strategist. “This is the basis of optimism.”
It hadn’t been good news overnight. Australian stocks ended down 0.5% and Treasury Wine Estates were beaten 11.25% as China imposed new tariffs on Australian wine, the latest move in the countries’ long-running trade dispute. .
But stocks in China rose another 0.1% after data showed industrial profits rose at the fastest pace since the start of 2017. South Korean stocks and Japan’s Nikkei were also up 0. 3%, although in volatile trade.
British manufacturer AstraZeneca’s coronavirus drug has been touted as a ‘vaccine for the world’ due to its inexpensive cost, but the vaccine’s effectiveness is now under more scrutiny, which it says experts, could delay its approval.
Several scientists questioned the robustness of the results showing that the shot was 90% effective in a subgroup of trial participants who initially mistakenly received a half dose followed by a full dose .
“With the number of global cases (coronavirus) now having passed 60 million … there is certainly difficult ground ahead for the global recovery, and that can create economic scars,” ANZ Bank analysts wrote in a note.
VIRUS VS VACCINE
U.S. hospitalizations for COVID-19 are on record, and experts warn Thanksgiving gatherings could lead to more infections and deaths.
More than 20 million people across England will be forced to live under the most severe restrictions even after a nationwide lockdown ends on December 2. Partial lockdowns in some European countries have also raised concerns about economic growth.
The chief economist of the European Central Bank highlighted these concerns, saying there were “worrying signals” in financing conditions in Europe for small and medium-sized businesses, which pushed down European bond yields. .
German 10-year Bund yields traded near their two-week lows on Friday, while Portugal’s 10-year government bond yields touched zero for the first time.
The euro, which last bought $ 1.1924, did little to react as traders largely took into account expectations of further ECB easing next month.
The dollar, which has fallen more than 2.2% so far this month as global sentiment surged, dampening demand for the safe haven currency, was near its lowest in nearly three months.
“Surely the euro-dollar cannot cross $ 1.20 without good news on the trade deal (Brexit),” added Juckes of Societe Generale.
The yield on benchmark 10-year Treasury bills fell to 0.8586% as some investors sought the safety of holding government debt.
In commodities markets, copper, another key indicator of global economic sentiment due to its use in infrastructure, peaked near 7-1 / 2 months. Oil, although up nearly 30% this month, plunged overnight amid oversupply issues, but Brent rallied in London to $ 48 a barrel.
Bitcoin, the world’s largest cryptocurrency, climbed to $ 17,256 on Thursday after falling 8.4% in the previous session, failing to hit its all-time high of $ 19,666.
The cryptocurrency has hardly reacted to a Financial Times report that Facebook will launch its own digital currency Libra in a limited format next year.
Bitcoin has risen by around 140% this year, fueled by demand for riskier assets.
Additional reporting by Stanley White in Tokyo; Edited by Jan Harvey
[ad_2]
Source link