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The gains follow news that the transition of power in the United States to President-elect Joe Biden will finally begin. On Monday, the head of the Federal General Services Administration admitted that Biden was the apparent winner in this month’s presidential election. This allows the new president to coordinate with federal agencies on plans to take office on January 20, despite President Donald Trump’s continued efforts to annul the election.
The news that Biden has chosen former Federal Reserve Chairman Janet Yellen as Treasury secretary has also boosted investor confidence. Widely admired in the financial world, Yellen would be the first woman to head the department in a line dating back to Alexander Hamilton in 1789, assuming a pivotal role in helping to shape policy at a perilous time.
Shares rose this month, pushing the S&P 500 up more than 10%, as investors grow hopeful that the development of vaccines and treatments for the coronavirus will help pave the way for the economic recovery next year. The gains pushed the Dow Jones Industrial Average closer to crossing the 30,000 point mark.
The latest vaccine developments also temper lingering concerns over increasing cases of the virus in the United States, as well as Asia and other parts of the world, and new government restrictions on businesses aimed at limiting the spread. .
On Monday, drug maker AstraZeneca reported surprisingly good results from ongoing vaccine studies. He said his potential vaccine, which is in development with the University of Oxford, was up to 90% effective. Unlike competing candidates, AstraZeneca do not need to be stored at ultra-cold temperatures, which facilitates their distribution.
Last week, Pfizer and Moderna both reported results from studies showing their vaccines to be nearly 95% effective. And, over the weekend, Regeneron Pharmaceuticals received US government approval for emergency use of its COVID-19 treatment. The drug, which Trump received when he fell ill last month, is aimed at preventing hospitalization and worsening disease from developing in patients with mild to moderate symptoms.
Trading is expected to be clear on Wall Street this week before the Thanksgiving holiday Thursday, when the US stock markets are closed. They will reopen on Friday for half a day.
In European markets, France’s CAC 40 rose 1.2%, while Germany’s DAX rose 1.1%. The UK FTSE 100 rose 1.3%. In Asia, the Japanese benchmark Nikkei 225 jumped 2.5%. Australia’s S & P / ASX 200 gained 1.3% and South Korea’s Kospi 0.6%. Hong Kong’s Hang Seng edged up 0.4%.
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