Stocks surged around the world and bonds tumbled after a large-scale coronavirus vaccine study delivered the most-promising results in the battle against the worst pandemic in a century.
Equities came off session highs after Mayor Bill de Blasio said New York City is coming “dangerously close” to a second wave of Covid-19. The S&P 500 still headed toward a record amid trading volume that was 170% above the 30-day
Stocks surged around the world and bonds tumbled after a large-scale coronavirus vaccine study delivered the most-promising results in the battle against the worst pandemic in a century.
Companies Zoom Video Communications Inc. and Peloton Interactive Inc. sank at least 11% on hopes that a return to normal is on the horizon. Online giant Amazon.com Inc. slid.
The cost to protect corporate debt against default in both the U.S. and Europe sank to the lowest since February, and junk-rated companies hit the market in droves to take advantage of a plunge in borrowing costs.
Oil soared, while gold, the Japanese yen and the Swiss franc slumped. The dollar rose.
Investors pulled out of haven assets and poured cash into markets that are closely tied to economic growth, with a gauge of global stocks also hitting a record high.
President-elect Joe Biden announced a new coronavirus task force as his transition team seeks to fulfill a campaign promise to develop a dramatically different approach than President Donald Trump’s to contain the pandemic.
The top infectious disease expert in the U.S. Anthony Fauci said the vaccine being developed by Pfizer will have a “major impact” on everything we do with regards to Covid-19 going forward.
Elsewhere, the Australian dollar-yen cross — a commonly watched risk barometer — surged by most since June. The Turkish lira soared after the weekend resignation of the country’s economy czar and the dismissal of the central bank chief.
Source: Bloomberg
