Markets in anticipation of the success of mass vaccinations against Covid-19
Asian stock markets are nearing new records as concerns over rising Covid-19 cases and vaccine supply delays have overshadowed optimism over a $ 1.9 trillion fiscal stimulus plan to help revive the U.S. economy..
Sentiment in the region was also boosted by the announcement that China has surpassed the U.S. to become the largest recipient of FDI in 2020, with $ 163 billion in inflows..
Futures markets also indicated a good start to trading in other regions.. E-mini S Index Futures&The P 500 is up 0.37%, eurostoxx 50 futures and the London FTSE are up 0.3%, while German DAX futures are up 0.4%.
«The investment story definitely inspired the Chinese markets and the sites of its closest neighbors.», – said Singaporean analyst at OANDA Jeffrey Halley.
Global stock markets have hit record highs in recent days, anticipating coronavirus vaccines to begin to reduce infection rates globally. An important factor was the expectation of a sharp growth in the American economy under the President. Joe Biden.
Nonetheless, investors still fear failures in the mass vaccination process, and US lawmakers continue to discuss another economic aid package..
MSCI outside Japan rises to 726.46.
Benchmark Scored Nearly 9% In January, On Track To Its Fourth Monthly Growth In A Row.
Japanese Nikkei Recovers From Early Trading Drop To Gain 0.7%.
Australian Stocks Up 0.4% After Country’s Pharmaceutical Regulator Approves Pfizer / BioNTech Covid-19 Vaccine With Phased Implementation.
Chinese stocks climb while blue-chip CSI300 climbs 1.1%. Hong Kong’s Hang Seng Jumps Nearly 2% Lead By Tech Papers.
All eyes are on Washington as US lawmakers have agreed that getting the Covid-19 vaccine should be a priority for Americans, even if that means activating a new stimulus package..
The number of infected worldwide is approaching 100 million with more than 2 million deaths.
Hong Kong isolated the Kowloon Peninsula area last Saturday, the first such measure taken by the city since the start of the pandemic..
Reports that a new British strain of coronavirus has proven to be not only highly contagious, but possibly more deadly have also added worry to the markets..
In the European Union, political leaders expressed dismay at the delay in deliveries of promised doses by AstraZeneca and Pfizer, and the Italian Prime Minister told suppliers that the vaccine delays amounted to a serious breach of contractual obligations..
On Friday, the Dow Jones fell 0.57%, the S index&The P 500 lost 0.30%. Nasdaq added 0.09%.
Jefferies experts say US stock markets look overvalued.
«A catalyst is needed for the markets to experience a real downturn and not just a bull market correction. For example, an economic downturn or a significant tightening of the Fed’s policy», – the analyst said Christopher Wood.
On the commodity side, Brent bounced back from early losses and remained flat at $ 55.41 a barrel, while US crude rose 3 cents to $ 52.30..
Gold remained unchanged at $ 1,852.9 per ounce.