This Monday markets are opening in a positive mood supported by renewed hopes for Pfizer’s coronavirus vaccine and positive news from Asia even given continuing rise of new Covid-19 cases all over the world. The market continues to be balancing between hopes for successful vaccine and the prospect of stricter containment measures. This is going to be a quieter week in terms of economic data with US retails sales data due on Tuesday and a few appearances of the central bank officials during the week.
US Stocks climbed as better-than-estimated results from some big companies tempered concern over a surge in coronavirus cases on Friday. U.S. consumer sentiment unexpectedly declined in early November as an increase in Covid-19 infections and the election prompted Americans to reassess their outlooks. Michigan and Washington imposed sweeping new restrictions on Sunday as total US infections crossed 11 Million mark. Dollar is weaker in early European trade on Monday with DXY 0.24% lower. S&P 500 is 3,585.15 1.36% higher.
European stocks are seen opening higher this morning with DAX trading 0.7% higher, CAC 0.9% higher and FTSE 0.7% higher. BBVA stocks soared over 15% after the news on PNC Financial nearing a deal to buy US business of the Spanish lender. Brexit talks are to be continued this week with Boris Johnson self-isolating and Dominic Cummings departing the cabinet. The major differences on fishing and competition rules remain unsolved.
Asian markets are higher this morning supported by a new trade deal RCEP signed on Sunday, the world’s largest trade agreement encompassing nearly a third of global population and positive data from Japan and China. China industrial production jumped 6.9% in the 12 months to October and retail sales rose 4.3%. Japan’ third-quarter GDP rose stronger than expected 5 %. Shanghai is trading 1.1% higher and Nikkei 225 is up 2.05%.
Oil prices are higher ahead of upcoming meeting of world’s top produces OPEC. US crude is trading around 2.4% higher at US$41.08.
Gold futures rose 0.3% to US$1,891.60/oz.
In Russia longer-term Russia government Eurobonds securities gained in Friday afternoon trading with the 30-year yield falling 3.8bps to 3.22%. A surge in Covid-19 infections is threatening to derail Russia’s economy, while policy makers are wary of lending too much support amid unstable financial markets. However, GDP figures for 3Q showed a bigger rebound than expected.
Latam: Maturities across the Brazil sovereign yield curve were little changed in Friday trading with the 10-year yield falling 2.2bps to 7.818%. The economy surged in the 3Q as aggressive government stimulus and the rollback of social distancing measures sparked consumption. The BCB’s economic activity index, a proxy for GDP, rose 1.29% MoM, above 1% estimates, with positive revisions also for the prior month.
SSA: Nigerian stocks surged the most in more than five years last week and triggered a market-wide circuit breaker for the first time as traders bought up shares in a hunt for assets with attractive yields. The Nigerian Stock Exchange All Share Index jumped by 6.2%, its steepest increase since April 2015. Issuance have been muted this year. Eurobond yields that spiked in the second quarter have now tightened to pre-pandemic levels and will continue to improve as economies open up and oil prices respond to higher demand.