Global Markets-Pfizer Vaccine Expects World Shares; Dollar, gold on the defensive

(Update value, adds reference)

NEW YORK, October 16 (Reuters) – Global shares rose on Friday while the dollar softened as investors welcomed the news that drugmaker Pfizer Inc. could produce a coronavirus vaccine in the United States by the end of this year.

But there is concern that Europe’s resurgence in the COVID-19 epidemic in the United States could lead to a rapid recovery in the world economy and the United States kept oil prices under pressure, and 10-year German bond yields for seven months. Coincided with the rise of

The S&P 500 was up 20 points or 0.6% at 3,503.63, while the Dow Jones Industrial Average jumped 253 points, or 0.9%, to 28,744.49 points. The Nasdaq Composite gained 43 points or 0.3% to close at 11,753.53 points.

Pfizer shares rose 3.1%. The US drugmaker said on Friday that it could file for the US authorization of the COVID-19 vaccine, which is developing in late November with German partner BioNTech.

As the global race to develop the coronovirus vaccine heats up, financial markets have tracked every twist and turn, hoping that a successful deployment will spark the world’s economy into a sustained rebellion following an annoying shutdown in the spring.

Some analysts say that investors are now trying to see the near-term fluctuations with the development of the vaccine in order to focus on a possible change in 2021.

“There is a consensus that things will improve next year,” said Rick Mechler, a partner at Cherry Lane Investments, a family investment office in New Jersey. “We go back and forth, but people have some hope.”

Cautious optimism also benefited European stocks. The pan-European STOXX 600 jumped 1.3%, while London, Frankfurt and Paris shares climbed between 1.5% and 2%.

However, for the year, European stocks have outperformed American and Asian stocks.

The pan-European STOXX 600 is down 11.6% so far this year, while the S&P 500 gained 8.3% and Asia-Pacific shares outside Japan, the largest index of MSCI, rose 5.2%.

Asian stocks were able to achieve modest gains on Friday, although China and Japan stocks declined thinly. MSCI Asia-Pacific’s share index rose 0.4%, while Japan’s Nikkei dropped 0.4%.

Chinese stocks declined 0.2%, but the main stock index was up for the third consecutive week.

The mood of reform on the trading floor dipped the US dollar, which was generally considered a safe-asset. The dollar slipped 0.1% to 93.714 against a basket of six major currencies.

A soft dollar helped the euro gain some ground, with the common currency gaining 0.1% to $ 1.1717.

Sterling UK Prime Minister Boris Johnson said businesses were prepared to be ready for the bracket in case they failed to form a free trade agreement with the European Union.

But the assurance that Britain will continue to talk to EU representatives early next week was expected that a deal could be reached. This caused some loss to Sterling and increased the earlier loss by 0.1% to $ 1.2906.

Nonetheless, in a sign that the world economy is not out of the woods and investors are not unanimously excited about the outlook, oil prices have fallen into concern that COVID-19 cases in Europe and the United States spike demand in two The world’s largest fuel-consuming region.

“It is a tug of war between those risks with well-flagged, pandemic, US elections, Brexit, and hope at the same time that these risks can be resolved in a matter of weeks or months”, Iman Kaou Said, head of European equity strategy at Barclays.

Brent crude futures fell 0.6% to $ 42.91 per barrel for December and US West Texas Intermediate crude futures for November delivery fell 0.4% to $ 40.8.

Highlighting the attractiveness of the market, Germany’s 10-year bond yield recorded its biggest weekly decline since August and hovering around a seven-month low of -0.63%.

Indeed, according to data from TradeVibe, a safe services company, demand for safe haven government bonds is so strong that about 69% of the euro in the government bond market – just 6 trillion euros – yielded negative yields in September.

Analysts say 10-year US Treasury yields rose to 0.7406% on Friday as investors posted higher-than-expected growth in US retail sales in September, ignoring an outlook that analysts say is causing widespread unemployment, And the imminent fiscal shortage is threatened by incentives.

Many investors now expect the US government to disclose only additional fiscal stimulus after the November 3 election.

Reducing prospects for near-term US stimulus, and modest pull-back from safe-haven assets weighed on gold. Gold is seen as a hedge against inflation and has benefited from the loosening of global monetary and fiscal policies.

Spot gold lost 0.3% to $ 1,901.61 an ounce.

Reporting by Koh Gui King in London and Julian Pontus in London, editing by Matthew Lewis and Nick Zieminski


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