World News – US – Vaccine advancement is raising stocks, dollar is still sick

LONDON / SHANGHAI (Reuters) – Investors have picked up stocks, commodities and currencies from emerging markets and avoided the dollar as AstraZeneca and the University of Oxford supplied the markets with their now regular Monday recording of the encouraging COVID-19 -Vaccine news. The STOXX index of the 600 largest companies in Europe rose to its highest level since February. Wall Street pointed to 0. 6% [. N] and Brent futures were almost 1. 5% stronger.

AstraZeneca and Oxford vaccines, which are said to cost only a few dollars a shot and should be easier to power up and store than vaccines from Pfizer, BioNTech, and Moderna, could also be up to 90% effective.

As the dollar moved through a range in the past few months, the euro touched USD 1. 19, but it was emerging markets that were likely to benefit from a cheaper and easier-to-store drug that grew the most. [/ FRX]

South Africa’s rand shrugged with a double state credit rating downgrade to add 0 over the weekend. 8th%. Russia’s ruble and Mexican peso both rose half a percent to bolster their standout months. [EMRG / FRX]

“The combined vaccine news for the past few weeks. . . This will lead to a much faster normalization of our daily life than just a few weeks ago, ”said Deutsche Bank analysts in a message to customers. “Things should look a lot more normal by spring. ”

The optimism of the markets also came after a top U. official. . S.. . Government efforts to develop vaccines said Sunday that the first vaccines could be given to U there. S.. . Health care workers and some others by mid-December.

U. . The S share is set to mimic gains in Europe and Asia as the Nasdaq futures rose 0. 4%, Dow Futures rose 0. 7% and U. . S.. . E-Mini-Futures for the S&P 500 were 0. 6% higher at 3. 576.

The rally also showed that investors are ready to look beyond the gloomy U.. S.. . Case numbers – which surpassed 12 million over the weekend – and mixed European economic data released on Monday.

IHS Markit’s headline flash composite PMI, considered a good guide to economic health, dropped to 45. 1 in November from the 50. October. 0 – the level that separates growth from contraction. A Reuters poll had predicted a flatter drop to 46. 1.

However, hopes for vaccines and the expectation of further incentives from the European Central Bank in the next month have improved optimism. The composite future output index jumped to 60. 1 of 56. 5, the highest since February.

« Today’s vaccine news is positive but is only partially responsible for the recovery in stock markets, » said Philip Shaw, chief economist at Investec in London. “(It) is also driven by the news that the U. . S.. . hopes to start the vaccination program in less than three weeks. ”

Eurozone government bonds were partially sold as investors also focused on the fact that the major economies remain tightly locked and COVID-19 cases are not falling.

The European equities rally brought the region up 15% in November and followed another record high for Asian equities even before the latest vaccine news was announced.

Analysts said the earnings disproved some uncertainty as monetary and fiscal aid to the U.. S.. . Economy remained elusive.

U. . S.. . Treasury Secretary Steven Mnuchin said last week that key pandemic loan programs at the Federal Reserve would expire in December. 31 to bring the outgoing Trump administration into conflict with the central bank and potentially weigh on the economy.

With the vaccine news and the dollar index, which puts the dollar at 92 against a basket of six major competitors. In 097 the commodity markets were still optimistic and traders were optimistic that crude oil demand could recover, which would drive oil higher.

West Texas Intermediate Crude Oil gained 71 cents, or 1. 67% on $ 43. 13 a barrel, in line with gains on Brent crude oil futures. Both benchmarks were up 5% last week.

Safe-Haven-Gold was meanwhile quoted at 1. $ 864 an ounce after losing nearly 10% from its high in early August. [GOL /]

« The positive sentiment about the effectiveness of coronavirus vaccines under development and the expectation that the group could extend the current cuts by three to six months at the OPEC meeting later this month remain positive. « said Stephen Innes, chief global markets strategist for Axi, a financial services company.

All offers were delayed by at least 15 minutes. A full list of exchanges and delays can be found here.

Stock, Janet Yellen, Thomson Reuters Corporation