Light at the end of the tunnel
Today’s news headlines:
‘Covid vaccine breakthrough fuels broad global equity rally’. Reports out yesterday that Pfizer’s Covid-19 vaccine has been found to be more than 90% effective in a late-stage trial prompted a surge in global stock markets. The news, combined with the optimism of a Joe Biden presidency, fuelled risk appetite, as US Treasury yields leapt to their highest level since March, with European Bonds following in their path. Brent Crude Oil prices, which have been hard-hit by the pandemic, soared 7.5% higher, along with the share prices of US oil companies. (Financial Times)
‘UK unemployment climbs most since 2009 as job cuts soar’. The UK’s unemployment rate rose to its highest since the global financial crisis over the summer, as the jobless rate climbed to 4.8% and redundancies hit 181k in the three-months through September. The data raises the question of whether the UK government could have avoided such figures by extending the furlough scheme sooner. (Bloomberg)
Today's events, rates, and data
Yesterday’s global rally in markets stalled overnight, as traders and investors weighed the hurdles still facing Pfizer’s coronavirus vaccine. S&P 500 and European equity futures declined, and US Treasury yields lost some of their gains. Meanwhile, demand for risk currencies continues to improve as global economic sentiment improves.
UK BRC Retail Sales Monitor: 5.2% vs 6.1% previously
UK Average Earnings Index: 1.3% vs 0.0% previously
UK Claimant Count Change: -29.8k vs 28.1k previously
UK Unemployment Rate: 4.8% vs 4.5% previously
EU ZEW Economic Sentiment: 10.00am
German ZEW Economic Sentiment: 10.00am
FOMC Member Kaplan Speaks: 5.00pm
FOMC Member Quarles Speaks: 7.00pm
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