Financial Markets Daily Report 17 November 2020
Positive news on another COVID-19 vaccine sparked a rally in financial markets at the start of the week. As Moderna reported that its vaccine was 94.5% effective (data from a preliminary analysis of a large late-stage clinical trial), stocks surged across the world, led by sectors sensitive to mobility restrictions, while at-home tech equities declined.
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- Positive news on another COVID-19 vaccine sparked a rally in financial markets at the start of the week. As Moderna reported that its vaccine was 94.5% effective (data from a preliminary analysis of a large late-stage clinical trial), stocks surged across the world, led by sectors sensitive to mobility restrictions, while at-home tech equities declined.
- FX markets and advanced-economy sovereign yields were little changed. Euro area peripheral spreads nudged down in spite of news that Hungary and Poland are blocking the approval of the EU's budget and the NGEU package due to their discomfort with a "rule of law" clause. On Friday, Fitch is scheduled to revise Portugal's rating.
- Brent oil prices increased towards $44 ahead of today's monitoring OPEC meeting.
- On the data front, indicators showed that China's economic rebound continued to broaden in October (industrial production +6.9% yoy, and retail sales +4.3% yoy). Also, Japan's GDP rose by 5% qoq in Q3 (-5.9% yoy).