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NEW YORK (Dow Jones) – The prospect of a corona vaccine being available soon is starting a fireworks display on Wall Street. Right at the start of trading, the Dow Jones Index and S&P 500 jumped to record highs on Monday. The Dow is currently up 4.7 percent to 29,647 points. The S&P 500 wins 3.4 percent. The Nasdaq composite lags behind with an increase of 0.9 percent.
Biontech and Pfizer have announced that the corona vaccine candidate they have developed is “more than 90 percent effective”. That drives Biontech shares up 18.5 percent, Pfizer up 7.5 percent.
Shares in companies that are suffering particularly badly from the Corona crisis and would benefit from a vaccine are rising steeply. This includes airlines and tourism companies. Delta Air Lines jumped 17.2 percent, United Airlines 22 percent. The share of the cruise operator Carnival is up 40 percent. The previous beneficiaries of the crisis, such as food delivery services or streaming providers, on the other hand, are being avoided. Among other things, the Netflix share is 8.4 percent in the red.
Even without the vaccine report, the news is good. The election of Joe Biden as the new US President alone would have been enough to trigger a relief rally on Wall Street. Investors celebrate not so much the personality, but rather the fact that after a phase of uncertainty there is finally clarity – and even more that the existing power relations in the US Congress are unlikely to change. The Democrats have defended their majority in the House of Representatives, the Senate should continue to be controlled by Republicans.
This means that Biden’s plans that are unfavorable for the stock market, such as reversing the tax cuts initiated by Trump or stricter regulation of technology companies, are unlikely to be implemented. Market participants are also hoping for an easing of the tension in the US trade war with China and other countries under a more conciliatory and predictable President Biden.
Setback for Alzheimer’s drugs causes Biogen to fall
Important economic data have not been announced for Monday. Meanwhile, the accounting season in the USA is slowly coming to an end. Before the bell started, McDonald’s reported on the course of the third quarter. The share increased by 0.9 percent. In addition to the figures, this should also support the expectation that a vaccine will soon make restaurant visits safe again. After the close of trading, Zoom and Beyond Meat will present business figures. The Zoom share is currently falling by 15 percent. The provider of video conferencing solutions has so far been a beneficiary of the pandemic.
Biogen collapse 30 percent after resuming trading. The stocks were suspended on Friday while the FDA was discussing the company’s Alzheimer’s drug. The relevant FDA committee recommended that the drug should not be approved. The FDA usually follows the committee’s recommendations, but is not bound by them. On Wednesday, Biogen shares had shot up 44 percent after statements by FDA officials were interpreted to mean that the authorities were open to approval.
Oil prices soar – gold under pressure
Oil prices are rising steeply. Here, too, the actors link the prospect of an early availability of a vaccine with the hope of a rapid recovery in the economy and thus in the demand for oil. The barrels of US light oil of the WTI variety rose by 10.2 percent to $ 40.93. Brentl increased by 9.3 percent to 43.11 dollars.
On the other hand, supposedly safe havens are avoided. The troy ounce of gold is 4.1 percent cheaper to $ 1,871. On the bond market, falling prices are pushing the ten-year yield up by 11.6 basis points to 0.93 percent.
The dollar index shows hardly any change on the foreign exchange market. Investors are withdrawing from safe currencies such as the dollar and the yen and are therefore taking greater risk.
INDEX last +/-% absolute +/-% YTD
DJIA 29,647.37 4.67 1323.97 3.89
S&P 500 3,628.53 3.39 119.09 12.31
Nasdaq Comp. 12,005.71 0.93 110.48 33.80
Nasdaq-100 12,137.99 0.39 46.65 38.99
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.17 1.2 0.16 -103.0
5 years 0.42 5.6 0.37 -149.9
7 years 0.68 9.7 0.59 -156.4
10 years 0.93 11.6 0.81 -151.5
30 years 1.72 11.8 1.61 -134.4
Forex last +/-% Mon, 8:55 am Fri, 5:16 pm% YTD
EUR / USD 1.1905 + 0.14% 1.1884 1.1877 + 6.2%
EUR / JPY 124.98 + 1.77% 122.99 122.71 + 2.5%
EUR / CHF 1.0787 + 0.86% 1.0687 1.0681 -0.6%
EUR / GBP 0.9021 -0.12% 0.9017 0.9021 + 6.6%
USD / JPY 105.09 + 1.74% 103.50 103.31 -3.4%
GBP / USD 1.3198 + 0.25% 1.3180 1.3167 -0.4%
USD / CNH (offshore) 6.5892 + 0.08% 6.5568 6.5892 -5.4%
BTC / USD 15,353.76 -1.09% 15,355.01 15,500.50 + 112.9%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 40.93 37.14 + 10.2% 3.79 -27.5%
Brent / ICE 43.11 39.45 + 9.3% 3.66 -38.9%
METALS last previous day +/-% +/- USD% YTD
Gold (spot) 1,871.39 1,951.15 -4.1% -79.77 + 23.3%
Silver (spot) 24.24 25.62 -5.4% -1.37 + 35.8%
Platinum (spot) 864.55 898.98 -3.8% -34.43 -10.4%
Copper future 3.21 3.15 + 1.6% + 0.05 + 13.4%
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DJG / DJN / cln / ros
(END) Dow Jones Newswires
Nov 09, 2020 9:57 AM ET (2:57 PM GMT)