Stocks Boom Amid Dollar Gloom
The US index closed 0.18% lower on Monday, losing ground for the third consecutive session.
Investors are still trading on a mixed risk setting as the greenback acts as a tug-of-war from record virus infections and the presidential race.
President Trump looks to have somewhat conceded defeat, however, continues his legal fight against the election results.
On the flip side, stocks clinched a fresh round of records yesterday, as alarming Covid-19 rates and hospitalizations were overshadowed by promising vaccine developments.
The Nasdaq and S&P were up by 1%, whilst the Dow was the main winner, closing almost 2% higher.
As another company enters the vaccination race, how many more will come forward by the end of the year?
Another Downturn in the Eurozone
The euro climbed on the back of the weak dollar yesterday, closing 0.10% higher.
This comes despite eurozone concerns that the economy will struggle to stay afloat until a vaccine arrives.
As the winter months creep in, increasing unemployment and the tightening of restrictions are giving the euro a bleak outlook.
With Austria being the latest entry in the bloc to impose a lockdown, how many other countries will follow suit?
Time is Running Out for Brexit Deal
The pound ended Monday’s session on an indecisive note due to warnings that a Brexit deal could be delayed until the end of the year.
This would be at the same time as the transition period. Negotiations remain troubled, and talks on fishing rights in UK waters have not progressed significantly since the summer.
This leads to the question; could the divorce date be delayed into 2021?
Gold Under Pressure Over Chinese and Vaccination Outlook
Gold was unable to regain its $1900 status yesterday, as upbeat Chinese industrial data confirmed the economy accelerated in Q3.
Added to that, Moderna’s announcement that their Covid-19 vaccine is 94.5% effective, has contributed to a brighter market mood and dented demand for the safe-haven.
WTI Reclaims $41
Oil surged by 3% on Monday as traders increased their bets that an effective and safe vaccine would boost global oil demand next year.
The news that the current White House would not impose a lockdown also boosted the rally.
We now look ahead at the signs of a Biden presidency and his stance on restrictions as America passes 11 million Covid-19 infections.