Global Rally Stalls in Asia.

10/11/2020 The rally in global stocks stalled in Asia this morning amid concerns a large-scale coronavirus vaccine study still has hurdles to clear despite promising results. Bonds and other haven assets climbed after overnight
declines. Shares pared gains in Japan, Hong Kong and Australia, though Chinese stocks were little changed and South Korea’s fell. S&P 500 futures and European contracts declined. Concerns about a smaller U.S. fiscal stimulus package, still surging coronavirus cases and legal challenges to the U.S. election outcome weighed on the positive vaccine sentiment. Earlier, the S&P 500 closed at a two-month high on news the coronavirus shot being developed by Pfizer Inc. and BioNTech SE prevented over 90% of infections. The Nasdaq 100 fell as investors rotated out of defensive technology.
The JSE closed at its best levels in more than two months, gaining for a sixth day, its longest winning streak since June 2019, as global markets rallied on positive news on the coronavirus vaccine front. Sasol, Bidcorp and banks provided the biggest boost, up 23.6 and 13.79 percent respectively. The JSE Allshare closed up 1.63%. Gold shares were hardest hit as Gold Spot tumbled 5% on the vaccine news, ANG lost 13.85%, GFI -15.51% and HAR – 16.33%.
• South Africa Stocks at Three-Month High as Vaccine News Spurs Rally.
• Rising Virus Cases Spurs South Africa to Consider Renewed Curbs.
• South Africa Plans Short-Dated Bond to Lower Borrowing Costs.South African Regulator to Consider Approving Nuclear Power Plan.
• MultiChoice Sees 1H EPS Between 68% & 74% Higher y/y.
• NPN: Lockdown Winners Sink After Pfizer Vaccine Progress
European stocks closed sharply higher on Monday as markets around the world made gains following Joe Biden’s projected election win and positive vaccine news from Pfizer. The pan-European Stoxx 600 closed up 4%, with banking stocks surging more than 12% to lead gains as all sectors except healthcare, and all major bourses, traded in positive territory. The oil, insurance, media and travel sectors also saw strong gains. FTSE + 4.67%,DAX + 4.94% and CAC +7.57%. Pfizer at one stage was up 13% but closed up 7.7%.
Overnight on Wall Street saw the Dow and the S&P 500 hit new intraday record highs. The 30-stock average rallied more than 800 points, posting its biggest one-day gain since June 5. It surged more than 1,600 points at one point before the weakness in the tech sector put pressure on the broader market. The S&P 500 gained 1.2%. Futures this morning are softer with the Dow down – 172 points, the S&P – 22 points and Nasdaq – 90 points.
These are some key events coming up:
• Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last year
• European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Federal Reserve Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”
• Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.
Gold has gained some ground this morning after plummeting more than 5% from its highs yesterday on the vaccine news, Gold traded as low as $ 1749, the lowest level since the 28th of September and is currently at $ 1884. Silver rose 0.1% to $24.10 per ounce. Platinum and palladium were up 0.2% at $868.30 and $2,483.07, respectively.
Oil prices have pulled back from yesterday’s highs on concerns over Covid 19 in Europe and the US. Both contracts rallied 8 % yesterday on the vaccine news, the biggest daily gains in 5 months. U.S. oil inventory numbers are due today, five analysts polled by Reuters estimated, on average, that U.S. crude stockpiles fell by 1.3 million barrels in the week to Nov. 6. OPEC+ agreed to cut supply by 7.7 million barrels per day from August through December and then ease the cut to 5.7 million bpd from January.