Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Stocks climb to record on economic recovery, vaccine hopes

Published 17/11/2020, 06:04 am
© Reuters.
EUR/USD
-
GBP/USD
-
US500
-
DJI
-
PFE
-
DX
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
STOXX
-
MIAPJ0000PUS
-
MIWD00000PUS
-
SPSY
-
SPNY
-
SPLRCI
-
MRNA
-

(Updates With close of European markets)

* Moderna 's positive COVID-19 data boosts stocks

* Oil jumps on hopes for demand resumption

* Sterling dips against dollar on Brexit talks

By Chuck Mikolajczak

NEW YORK, Nov 16 (Reuters) - A gauge of global stocks climbed to a record and oil prices jumped on Monday as the latest positive data for a possible COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment.

U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, thanks to news from pharma company Moderna MRNA.O saying its prospective vaccine was 94.5% effective in preventing the illness which has crushed economies across the globe. names, which generally benefit the soonest as an economy recovers from a recession, led the way higher, with energy .SPNY , industrial .SPLRCI and financial .SPSY sectors the top performing.

The announcement by Moderna followed similarly upbeat news a week ago from rival Pfizer (NYSE:PFE) PFE.N .

"The endgame is as clear as it has been while the path to get there may be murkier than we expected," said Ross Mayfield, investment strategy analyst at Baird.

"You can see the continued broadening out of the rally and in the rotation into some of the more cyclical and value-oriented parts of the market."

Mayfield cautioned that there were still some near-term headwinds facing the market, including uncertainty over a possible fiscal stimulus package to buttress the economy before any vaccine could begin to be distributed.

The MSCI World Index of global shares, building on strong overnight gains in Asia's leading markets managed to extend gains after the Moderna announcement to hit a record.

The Dow Jones Industrial Average .DJI rose 296.07 points, or 1%, to 29,775.88, the S&P 500 .SPX gained 19.6 points, or 0.55%, to 3,604.75 and the Nasdaq Composite .IXIC added 23.46 points, or 0.2%, to 11,852.75.

Shares in Europe also gained on the Moderna news, with the STOXX 600 closing at its highest level in over 8 months. pan-European STOXX 600 index .STOXX rose 1.18% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.91%.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had hit its highest level since launching in 1987 as Japan pulled out of recession, China posted better-than-expected industrial output data and the region signed the largest ever trade deal. prospect of an end to demand-demolishing coronavirus-driven lockdowns also helped oil prices jump.

U.S. crude CLc1 rose 2.72% to $41.22 per barrel and Brent LCOc1 was at $43.82, up 2.43% on the day. [ Treasury yields rose on Monday and the yield curve steepened in the wake of the vaccine data. Benchmark 10-year notes US10YT=RR last fell 2/32 in price to yield 0.8979%, from 0.893% late on Friday. initially showing slight gains, the dollar edged lower against a basket of major currencies. Citibank said it expects the greenback to weaken as much as 20% next year due to the widespread distribution of COVID-19 vaccines and ongoing monetary easing. was little changed versus the greenback as the clock was running down on Brexit trade talks, European Union diplomats warned Britain. dollar index =USD fell 0.013%, with the euro EUR= up 0.07% to $1.184.

Sterling GBP= was last trading at $1.3187, up 0.01% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Coronavirus cases Nov 16

https://tmsnrt.rs/32NOJdz GRAPHIC-World FX rates

http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j GRAPHIC-Emerging markets

http://tmsnrt.rs/2ihRugV GRAPHIC-Global assets in 2020

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.