Macro Roundup (Nov 17)

SHANGHAI, Nov 17 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar lost ground against other major currencies on Monday, while the pound and the euro drew strength from signs that Britain and the European Union could make progress negotiating a post-Brexit trade deal.

Sentiment across markets were mixed, caught between fears of a resurgence of global coronavirus cases and hopes for a working vaccine that could help reignite global growth.

Against a basket of currencies, the dollar softened marginally, fetching 92.565 in Asian trade.

Hopes for Brexit compromise emerged after news Dominic Cummings, the most powerful adviser to Prime Minister Boris Johnson, would leave Downing Street in mid-December.

Meanwhile, Britain's top Brexit negotiator David Frost said on Sunday that Britain and the EU have made some progress in their post-Brexit trade deal negotiations but might not succeed in getting an agreement.

On Wall Street, U.S. stock futures opened slightly higher on Monday night after two of the three major market benchmarks closed at record levels.

Dow Jones Industrial Average futures were up marginally and S&P 500 futures gained 0.1%. Nasdaq 100 futures outperformed, rising 0.6%.

Tesla shares jumped more than 10% after S&P Dow Jones Indices said the electric car maker would join the S&P 500 index, effective Dec. 21.

Earlier in the day, the Dow and S&P 500 posted all-time closing highs. The Dow also notched an intraday record. Those gains came after Moderna released trial data showing its coronavirus vaccine was more than 94% effective, further raising expectations of a sharp economic recovery.

That marked the second positive announcement related to a coronavirus vaccine in a week. Pfizer and BioNTech said Nov. 9 that their Covid-19 vaccine candidate was more than 90% effective among participants in a late-stage trial.

Oil prices jumped 3% on Monday, recouping the previous session's losses after Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.

Brent crude futures for January were up $1.02, or 2.4%, to $43.80 a barrel, while U.S. West Texas Intermediate crude for December settled $1.21, or 3.02%, higher at $41.34 per barrel.

“Vaccine euphoria has already been priced in heavily since last week, but a second remedy to COVID-19 shows that a large-scale vaccination programme, with sufficient amounts for the global population, is somewhat closer now,” said Rystad Energy analyst Louise Dickson.

The announcement by Moderna comes after Pfizer Inc reported last week that its vaccine was more than 90% effective, raising hopes that pandemic-driven damage to the global economy could be reduced.

Gold recovered from a more than 1% dip on Monday as investors weighed immediate concerns over rising coronavirus cases and bets on further economic support even as Moderna became the second drugmaker to declare effective vaccine test results.

Spot gold was steady at $1,887.10 per ounce. U.S. gold futures settled 0.1% higher at $1,887.80.

Bullion dropped as much as 1.3% after Moderna said its experimental vaccine was 94.5% effective, but this was less than the more than 5% slump after Pfizer last Monday announced its vaccine was over 90% effective.

Key economic data slated for release today include US Import Price Index for October, US Retail Sales for October and US Industrial Production Index for October.