Good news for vaccines again, two major U.S. stock indexes hit record highs
On Monday, U.S. time, the three major U.S. stock indexes closed higher across the board. The Dow rose about 470 points, or 1.6%, and the S&P 500 index rose 1.16%, both of which set record closing highs. In addition, the Nasdaq closed up 0.8%.
Good news came out of Coronavirus vaccine again. The US biotech company Modena announced on Monday that its experimental Coronavirus vaccine candidate has an effectiveness of 94.5% and a longer shelf life. Modena became the second U.S. drugmaker after Pfizer to report results in vaccine experiments far higher than expected.
Following this news, the U.S. stock market appeared similar to the market when Pfizer released the vaccine report last week, but the market reaction was not as dramatic as it was then. The sectors that have been hit harder by the pandemic, including cruise ships, aviation, catering, and retail, have generally risen. In the market, the Russell 2000 Index, which represents the market value of small and medium-sized enterprises, has set a record high. The technology sector recorded a slight increase. In terms of breakdown, the share prices of industry leading stocks such as Apple, Amazon and Facebook closed slightly higher, while “home isolation” and “home office” concept stocks generally fell. Analysts at JPMorgan Chase believe that if market funds are to be rotated towards cyclical stocks, some continued positive news on vaccines or support from further financial assistance may be needed.
The market pays close attention to US retail data and retail performance
Large U.S. retailers including Wal-Mart and Target will release their financial results this week. The U.S. Department of Commerce will also release retail data for October. The market will use this to evaluate the impact of the pandemic on U.S. consumption in the absence of financial support. What kind of impact.
The Deputy Governor of the European Central Bank calls for a solution to the banking problems. The Bundesbank expects economic weakness in the fourth quarter
The three major European stock markets all closed higher on Monday. London and Paris stock markets closed up 1.66% and 1.7% respectively, and Frankfurt stock markets rose 0.47%. European Central Bank Deputy Governor Gindos said on Monday that the economic situation in the euro zone in the fourth quarter may be weaker than previously expected, and the progress of vaccine development is the “light of hope”. It is urgent to solve the structural fragility of the European banking industry. In addition, the Bundesbank believes that the German economy may stagnate or decline in the fourth quarter. This news has affected the trading sentiment of the German Frankfurt stock market to a certain extent.
Crude oil prices have risen significantly, there is still short-term pressure on the demand side
Crude oil prices rose significantly on Monday. WTI light crude oil futures in the United States closed up about 3% to US$41.34 per barrel. Brent crude oil futures broke through US$44 during the session and closed up 2.43% to US$43.82 per barrel. Market analysis pointed out that the positive news of vaccines caused the crude oil market to be overbought in the intraday market. Oil prices fell after a sharp rise. The demand for crude oil still has pressure in the short term.
The price of gold is stable, the market has digested vaccine-related news
Gold prices were stable on Monday. Gold futures for December delivery fell by more than 1% earlier in the market, and recorded a slight increase at the close of trading at US$1,887.80 per ounce. Some analysts pointed out that investors had adjusted their gold holdings based on Pfizer’s vaccine report last week. The market generally expects that it will take a long time for the vaccine to really help the economy recover.