Optimism is neverending

Yesterday’s massive rally was sparked by the news that the vaccine developed by Pfizer seems to be 90% effective in the latest trials, meaning 9 out of 10 patients developed a strong immunity reaction.

Indices soared 5-7%, with cyclical sectors outperforming and tech sectors underperforming.

On Tuesday. Equity benchmarks continued higher as it seems that optimism is neverending. 

When it comes to the US election, late on Monday, Attorney General William Barr authorized the Justice Department to launch a probe into “substantial allegations” of voter fraud in the 2020 election. 

It might take weeks until all the accusations are either confirmed or denied. Until then, the official result of the election won’t be known.

From other news, China’s CPI inflation rose just 0.5% year-on-year in October, below the 0.8% market expectations and down notably from 1.7% printed in September.

Traders will now focus on the German ZEW surveys, which are expected to take a hit after the newest round of lockdowns in the EU.

The USD still trades sideways, while metals puked yesterday and dropped 5%. Oil rose amid vaccine optimism and settled above the 40 USD level.

Source: https://www.axiory.com/market-news/optimism-is-neverending