Forex News

Covid-19 vaccine news push stocks higher

Covid-19 vaccine news push stocks higher

Global stocks hit a new record high on Monday, widening their earlier gains, after a report showing that new trials by Pfizer and BioNTech boosted global equities to a new record high.

Pfizer and BioNTech announced that the Covid-19 vaccine being developed by them can prevent more than 90% of infections, according to initial data from a study on tens of thousands of volunteers. 

The upbeat announcement added more positivity to the sentiment after Joe Biden’s win over the weekend, which ended the phase of uncertainty about elections. 

The victory of the Democratic candidate Biden in the presidency of the United States increased optimism in financial markets despite the Republican control of the US Senate, which was reflected in the performance of global stock indices.

The MSCI Global Equity Index, which measures the performance of stocks in 49 countries around the world, rose today, Monday, by 0.5%, to a new record, after recording last Friday's biggest weekly gain in nearly seven months.

E-mini S&P 500 futures rose more than 1.4% on Monday. Nasdaq futures rose more than 2%, close to a record high, signaling a positive start for the US markets.

The MSCI Asia Pacific Index of stocks excluding Japan surged 1.3%, the highest level since January 2018, and the Euro Stoxx 600 index of European shares augmented 1.5%, the highest level in a month.

Despite the Republican control of the US Senate, which may make it difficult for the US administration to make major political changes, optimism has spread in the financial markets.

Markets are betting on a potential fiscal stimulus and more monetary easing by the Federal Reserve in the coming period. 

Share Article