Macro Roundup (Nov 10)

SHANGHAI, Nov 10 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

Trade-related currencies were buoyed on Monday by a pick up in risk appetite after Joe Biden clinched the U.S. presidency and Pfizer Inc said its experimental vaccine was more than 90% effective in preventing COVID-19.

The Scandinavian currencies and the Japanese yen were amongst the biggest movers, while the offshore Chinese yuan hit its strongest in 28-months.

A Biden presidency is expected to boost international trade relations and the prospect of a successful coronavirus vaccine is seen as a major tailwind, with global cases continuing to rise.

Simon Harvey, currency analyst at broker Monex Europe, said although markets were already trading with “an air of optimism”, Pfizer’s findings, based on initial data from a large study, had boosted risk appetite further.

The dollar stabilised against a basket of currencies having touched a 10-week low of 92.12 and was last up 0.2% at 92.31.

On Wall Street, stock futures rose slightly in overnight trading on Monday following a record-setting rally sparked by promising news on a coronavirus vaccine.

Futures on the Dow Jones Industrial Average gained 50 points. S&P 500 futures rose 0.2% and Nasdaq 100 futures climbed 0.3%.

The overnight action came after a strong rally on Wall Street that saw the Dow and the S&P 500 hit new intraday record highs. The 30-stock average rallied more than 800 points, posting its biggest one-day gain since June 5. It surged more than 1,600 points at one point before the weakness in the tech sector put pressure on the broader market. The S&P 500 gained 1.2%.

U.S. pharmaceutical giant Pfizer and German biotech firm BioNTech announced Monday their coronavirus vaccine was more than 90% effective in preventing Covid-19. The news sent travel stocks soaring as the’ recovery of these companies depends on a successful economic reopening. American Airlines, Delta and United all jumped more than 15%, while Carnival, Norwegian and Royal Caribbean surged more than 25% each.

Oil fell below $40 a barrel on Friday as drawn-out vote counting in the U.S. presidential election kept markets on edge and new lockdowns in Europe to halt surging COVID-19 infections sparked concern over the demand.

In the U.S. election, Democratic presidential candidate Joe Biden took the lead over President Donald Trump in Georgia and Pennsylvania on Friday, edging closer to winning the White House as a handful of states continue to count votes.

Three days after polls closed, Biden has a 253 to 214 lead in the state-by-state Electoral College vote that determines the winner, according to Edison Research. Winning Pennsylvania’s 20 electoral votes would put the former vice president over the 270 he needs to secure the presidency.

Gold tumbled over 4% on Monday as news of the first successful late-stage COVID-19 vaccine trials prompted investors to dump safe-haven bullion and flock to riskier assets.

Spot gold was down 4.8% at $1,857.61 per ounce, while U.S. gold futures settled down 5% at $1,854.40.

Spot prices beat a sharp retreat from a near two-month peak of $1,965.33 hit earlier amid a weaker dollar and hopes for more stimulus following Joe Biden’s victory in the U.S. elections.

Equities surged after Pfizer Inc said its experimental COVID-19 vaccine was more than 90% effective. Pfizer and German partner BioNTech SE said they expect to seek U.S. emergency use authorization later this month.

Key economic data slated for release today include China Consumer Price Index (CPI) for October, Euro Area ZEW Economic Sentiment Index for November, Germany ZEW Economic Sentiment Index for November and US JOLTs Job Openings.