November 27, 2020

Market and Financial News Aggregator

European Shares Set To Drift Lower After Big Rally

2 min read

European stocks are likely to open lower on Tuesday after posting strong gains the previous day on the assumption that Democrat Joe Biden would be the next U.S. President.

The course of Biden’s transition to power is dependent in part on an obscure declaration called “ascertainment.”

Senator Mitch McConnell of Kentucky, the top Republican in Congress, on Monday threw his support behind Donald Trump in a sharply worded speech on the Senate floor.

In his first public remarks since Biden was declared the winner, McConnell didn’t offer any evidence of fraud but declared that Trump was “100 percent within his rights” to look into allegations of irregularities and weigh his legal options.

Asian markets came off from their day’s highs as global Covid-19 cases continued to rise and investors weighed the prospects of fiscal stimulus constrained by a likely gridlock in Washington.

China’s factory-gate prices declined at a sharper-than-expected pace in October and consumer inflation fell to its lowest level in a decade, signaling subdued consumer demand.

Brazil’s health regulator halted clinical trials for China’s Sinovac coronavirus vaccine after adverse effects had emerged.

Elsewhere, Japanese Prime Minister Yoshihide Suga instructed his cabinet to compile a package of stimulus measures to cushion the blow from Covid-19, the country’s economy minister Yasutoshi Nishimura told a news conference after a regular cabinet meeting.

Gold rose over 1 percent in Asian trade after falling as much as 4.5 percent on Monday while oil slipped after posting the biggest one-day percentage gain in five months.

Overnight, U.S. stocks rose broadly after Pfizer and BioNTech announced that their vaccine candidate was more than 90 percent effective in preventing Covid-19 and that they have so far found no serious safety concerns.

The Dow Jones Industrial Average soared over 1,600 points to hit a fresh record intraday high before ending the session 3 percent higher at its highest level in over eight months.

The S&P 500 climbed 1.2 percent, while the tech-heavy Nasdaq Composite lost 1.5 percent as investors rotated into some of the stocks hardest hit by the pandemic.

European stocks surged to the highest level since March on Monday, with positive news on the vaccine front and expectations that Trump’s election lawsuits are unlikely to pass legal muster boosting sentiment.

The pan European Stoxx 600 surged 4 percent. The German DAX spiked 4.9 percent, France’s CAC 40 index soared as much as 7.6 percent and the U.K.’s FTSE 100 jumped 4.7 percent.

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2020-11-10 00:34:44

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