Global financial markets remain in a balance between optimism over COVID-19 vaccines and near-term concerns of spike in infections and tighter lockdowns in the United States and Europe. Market sentiment was boosted early last week, after biotech company Moderna announced that first data suggests its COVID-19 vaccine is 95% effective, adding to the hope generated by the breakthrough announced by Pfizer about its vaccine the previous week.
The prospect of massive vaccine distributions in 2021 contrasted with the lingering risks to the global economic outlook from the worsening US health crisis, with the country’s daily case count approaching 200,000, ahead of the Thanksgiving holiday. this week.
SPI futures indicate another positive start to the new trading week, implying a 34 point jump this morning, ahead of a week that will be underscored by December GDP partials, including data on private capital spending for the quarter, as well as the quarterly construction work Completed.
The ASX200 posted its third straight week of gains last week, in what is shaping up to be a bumper month for Australian stocks. After a shaky start, the benchmark added 2.1 percent for the week, as the stock market continued to benefit from the global rotation into value stocks. The heavily weighted financial sector led the rally with a return of 6.18 percent, followed by the energy sector, which added 3.06 percent.
Amid a growing number of cases, a growing number of deaths, progressively tighter restrictions and a fiscal stimulus package that seems unlikely to arrive this year, a lot of economic data from the United States will be closely watched this week.
The highlight will likely be the U.S. Federal Reserve’s monetary policy brief, which will be read by market participants to indicate that the Fed is willing to step in with further monetary policy stimulus to fill the gap. the vacuum left by the new budgetary expenditure. In addition to the Fed minutes, preliminary GDP figures should claim that the US economy grew 33.1% in the last quarter, while jobless claims in the US seem to indicate that the labor market is recovering. still stagnates.
Global PMI data
Market participants will have a forward-looking look at global economic activity early this week, when a series of Flash PMI surveys are released. The focus will be on business activity in the service sector, particularly in Europe, which has been found to be volatile during the pandemic as service conditions fluctuate based on economic restrictions and consumer confidence. A worsening of the health crisis and tighter lockdowns in the northern hemisphere, market economists estimate a decline in trade activity in Europe and the United States, with a decline in manufacturing and services activity in Europe of 53.2 and 42.2, and manufacturing and service activity in the United States expected to decline to 52.5 and 55.8.
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