U.S. Stocks Surged Forward Monday. What about Other Shares?
Stocks started the week trading in the green. Investors are optimistic thanks to further stimulus bill negotiations, as well as the impending deployment of the first Covid-19 Vaccine in the U.S.
The S&P 500 futures surged forward by approximately 0.7%. According to reports, the first deliveries of the Pfizer Inc. BioNTech SE coronavirus vaccine are due to arrive Monday morning in the U.S.
Meanwhile, a bipartisan group of lawmakers plans to unveil a $908 billion pandemic relief bill the same day, even though a key negotiator noted that there is no guarantee Congress will pass it.
In Europe, stocks got a boost after the EU’s chief Brexit negotiator announced at a private meeting of ambassadors that a trade deal with Britain could be done as soon as this week. The Sterling skyrocketed by the most in nearly two months due to this news, while gilts sold off. On the other hand, the U.S. currency extended its plunge with Treasuries.
Overall, the Stoxx Europe 600 Index rallied by 1% on Monday, while futures on the S&P 500 Index increased by 0.7%. The MSCI Asia Pacific Index also added 0.2%, but the MSCI Emerging Market Index edged lower by 0.1%.
Covid-19 Vaccine may boost the U.S. economy in the coming summer
It seems global equities will recover from their first week of losses in six months. Even though hurdles remain as the coronavirus continues to spread and a U.S. stimulus deal remains undecided. According to the head of the U.S. government’s vaccination drive, almost 80% of the population could be given the shot by next summer. Considering this, Wall Street strategists are in broad agreement that Covid-19 vaccines will supercharge the U.S. economy next year.
Michael Strobaek, the global chief investment officer at Credit Suisse Group AG, stated that there is substantial pent-up investment demand across the entire institutional world. Meanwhile, investors are steering into year-end with tons of liquidity on the sidelines. He added that he would not be on the wrong side of that.
On Monday, AstraZeneca Plc shares tumbled down to an eight-month low after agreeing to buy Alexion Pharmaceuticals Inc. for $39 billion. Furthermore, WTI crude oil remained near $47 a barrel. Even after another tanker explosion in the Middle East put the region’s stability in question.
On Tuesday, China will release its industrial production and retail sales data for November. Additionally, the Federal Reserve plans to meet on Tuesday and Wednesday. Markets widely expect fresh guidance on its continued asset purchases.
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