By Han Tan, Market Analyst, ForexTime
US benchmark stock indices are set for gains when markets open today, fuelled by positive developments surrounding a Covid-19 vaccine. Russia announced today that it has registered the world’s first Covid-19 vaccine, while drug makers such as BioNTech, Novavax, and Inovio Pharmaceuticals say they are moving closer to their respective vaccines, with these stocks making some of the biggest pre-market moves.
Such developments are pushing the SP500 minis to about 0.5 percent, or a mere 18 points, away from its record high.
The headlines have also contributed to Gold prices hurtling back below the psychologically-important $2000 level. Bullion has fallen by some 2.3 percent so far today, which would mark its biggest single-day move since April. The news may have spurred on the technical pullback needed to bring Gold prices away from overbought territory. With a flood of US Treasuries being brought to market this week, there could also be some profit-taking in Bullion prices at play.
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Risk appetite has also seen other tailwinds, including news that US President Donald Trump is considering a tax cut for capital gains. Investors outlook surrounding Germany, Europe’s largest economy, over the next 6 months also registered a positive surprise. Such headlines make for a risk-on mood, emboldening investors who continue to remain optimistic over the global economic recovery.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
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