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US Equities Recorded The Biggest Intraday Gained Overnight After The Progression Of Vaccine News Surfaces

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  • In short-term, dollar continues to remains weaker against major currencies.

Key takeaways of the latest covid vaccine development.

What we know:

BioNTech’s Covid-19 vaccine developed with the help of US partner Pfizer and China’s Fosun is on course to become the first approved vaccination in the US and EU – FT.

When the vaccine gets the regulatory approval:

Pfizer and BioNTech said they expect to have complete safety data from the trial ready to submit to US and EU regulators by the third week of November. Relevant analysts expect the US regulator to move quickly, perhaps approving a vaccine on an emergency basis in December – NYT.

What we don’t know:

Clinical trials only allow scientists to make an estimate based on statistics known as efficacy. The effectiveness of a vaccine can only be firmly determined once millions of people get it. Moreover it is not yet confirmed whether the shot will protect elders above 65 or children below 16 based on the sample range taken in the phase 3 trials – NYT.

Markets Reaction:

We think the latest vaccine developments are more effective than previous claim and risk-on rally in global equities will continue. Rupee, euro and pound will get supported but yen may fall further due to wide trading interest in riskier assets.

US Stocks finish higher on Vaccine Results, Biden Win

The US stock market finished session sharp higher on Monday, 09 November 2020, as risk sentiments bolstered after progress on a Covid-19 vaccine and Democrat Joe Biden’s electoral victory.

At the close of trade, the Dow Jones Industrial Average index advanced 834.57 points, or 2.95%, to 29,157.97. The S&P 500 index added 41.06 points, or 1.17%, to 3,550.50. The tech-heavy Nasdaq Composite Index fell 181.45 points, or 1.53%, to 11,713.78.

Market players welcomed Biden’s victory as it removed some U.S. political uncertainty and raised expectations he will implement a large fiscal stimulus package to boost the coronavirus-hit economy. Biden has pledged $2 trillion to upgrade America’s infrastructure and shift to a clean-energy economy. Democrats are also calling for $2 trillion for an additional stimulus package to fight the economic fallout from the virus. Biden, the vice president under Trump’s predecessor Barack Obama, is seeking a tax hike on wealthy individuals and wants to raise the corporate tax rate from 21% to 28%. However, the level is still lower than the 35% rate that was in place when Trump took office nearly four years ago.

Investors also cheered trial data from drugmakers Pfizer and BioNTech indicating their Covid-19 vaccine is more than 90% effective. The vaccine announcement was seen on Wall Street as a sign that the pharmaceutical industry may soon have a viable way to control a disease that has derailed the U.S. economy for much of 2020 and has killed more than 230,000 Americans.

TREND : WEAK BULLISH / SIDEWAYS

Time                                      :           10/11/2020

Pivot                                     :         1.1851

Technical View                     :         LONG ABOVE 1.1871

Target                                   :        1.1891, 1.1921, 1.1981, 1.2035

Technical View                      :          SHORT BELOW 1.1831

Target                                   :        1.1811, 1.1765, 1.1721, 1.1651

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