Vaccine-related news adding to the upbeat tone among global investors
Wall Street stocks finished on a positive note overnight amid fresh signs that Washington can get past its partisan divide and strike a long-awaited deal after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held another round of positive talks and reported progress towards consensus. Furthermore, the Food and Drug Administration said its preliminary analysis of a vaccine candidate developed by Moderna confirmed its safety and effectiveness, adding to the upbeat tone among investors. As a result, the S&P 500 rose 1.29%, the Dow Jones Industrial Average gained 1.13%, and the tech-heavy Nasdaq climbed 1.25%.
Asian markets followed the suit and staged a rally on Wednesday after revived hopes for more stimulus in the U.S and rising optimism over the economic outlook amid approval for vaccines globally. Meanwhile, Japan reported weaker than expected export data for November. In particular, exports fell 4% in November, while imports dropped 11% from a year earlier. However, Nikkei 225 in Tokyo gained 0.25% during the session amid a widespread risk-on tone. Hong Kong’s Hang Seng surged 0.97% and the Kospi in South Korea rose 0.54%.
Asian markets followed the suit and staged a rally on Wednesday after revived hopes for more stimulus in the U.S and rising optimism over the economic outlook amid approval for vaccines globally. Meanwhile, Japan reported weaker than expected export data for November. In particular, exports fell 4% in November, while imports dropped 11% from a year earlier. However, Nikkei 225 in Tokyo gained 0.25% during the session amid a widespread risk-on tone. Hong Kong’s Hang Seng surged 0.97% and the Kospi in South Korea rose 0.54%.
Positive risk sentiment coupled with strong economic updates pushed the euro to fresh long-term highs around 1.2200 amid the persisting and widespread dollar weakness. Despite the overbought conditions, it looks like the EURUSD pair is ready to extend the rally ahead of the Federal Reserve meeting outcome due later today. If the central bank announces expansion of its bond-buying program, h selling pressure surrounding the dollar could intensify. On the other hand, the euro could attract profit-taking following the rally and finish the day below the 1.2200 figure.
