Global stock flatline replaces caution vaccine euphoria as bond yield slides


LONDON (Reuters) – Global shares fell flat on Friday as the US and European COVID-19 hospital surged, raising eagerness for a promising vaccine, although Wall Street News appears poised for a strong election for president-elect Was, which Biden set his cement. Victory in the election.

File photo: London Stock Exchange Group offices are seen on December 29, 2017 in the city of London, UK. REUTERS / Toby Melville / File Photo

US futures rose 0.5% to 0.830 GMT after Edison Research projected Biden to capture Arizona’s battlefield, undermining President Donald Trump’s efforts to reverse the results of the November 3 election.

However, the Pan-European Stocks 50 was down 0.2% from its initial levels. MSCI’s all-country equity index slipped 0.1%

François Savory, Chief Investment Officer at Swiss, said, “You received overnight news on COVID in the US, which is not good and … provided investors with the opportunity to book some profits post-Pfizer and post-US elections Does. ” Money Manager Prime Partner.

The news of a growing coronovirus infection at the end of Wall Street on Thursday saw little and as investors weighed the schedule for effective vaccination. Several US states have introduced stricter social reform rules after reports of record hospitalization

Even in Europe, the number of hospitals is now at the peak of the first wave and officials said that measures to control infection should continue.

US Federal Reserve Chairman Jerome Powell said Thursday that progress in developing the coronovirus vaccine was welcome news, but near-term economic risks remain, underscoring the possibility of additional government stimulus.

However, world shares are up 1.3% for the week. They reached record highs on Monday when pharma giant Pfizer announced that its vaccine was effective in 90% of cases. Russia also promised after reporting its vaccine test.

European markets fell from 0.1% to 0.7%, but the STOXX pan-regional index is set for a second week of large gains. It is up 5% this week as the vaccine news prompts more investors to buy shares in banks and travel firms.

Earlier, there was a 1% drop in Chinese blue-chips after the Trump administration banned US investment in Chinese military-linked firms. A series of high-profile bond defaults were also weighed by state-owned enterprises.

Japan’s Nikkei 225 fell 0.57%.

Some investors saw the pullback as a shopping opportunity.

“I think it’s dark just before dawn,” said Michael Fréjis, portfolio manager at Fréjis Capital Partners in Sydney.

“You have to stop the second wave of coronovirus, new sets of shutdowns, obvious problems around the world, traveling again … but at the same time, we have the strongest possible evidence that we have a vaccine.”

Encouragement

A sticking point for markets is the inability of US lawmakers to package enough spending. Thursday’s data highlighted the need for this recovery, reflecting slowing jobs and weak inflation.

While Democrats in Congress urged talks on a multi-trillion-dollar stimulus plan, top Republicans called it too expensive.

US Treasury yields have declined further, with 10-year yields down 0.87% at one basis point, with a seven-and-a-half month high of 0.98% on Monday.

The yield curve, a gauge of growth and inflation expectations, is also flattened.

ING Bank analysts said this decrease in bond yields) was further exacerbated by soft-than-expected US inflation data for October, which was associated with a weaker economic reality.

Germany’s 10-year yield slipped 1.5bps to -0.54%, reaching a two-month high this week.

(GRAPHIC – Gains amid expected vaccine in S&P 500 regions 🙂

Oil prices remained on track for a second week of gains, but COVID-19 growth and higher US raw material reserves pushed up, as futures prices dipped 1% to $ 43 a barrel.

Reporting by Sujata Rao in London and Andrew Galbraith in Shanghai; Additional reporting by Tom Arnold in London; Editing by Larry King

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