Daily summary: Global equities slide on profit-taking

• IMF warned that  euro zone could see weaker growth in Q1 2021
• Moderna's (MRNA.US) Covid-19 vaccine is 94.1% effective in final results
• OPEC punts decision on extending production curbs until tomorrow

European indices erased early gains and finished session lower after the IMF warned that the euro zone could see weaker growth for the first three months of 2021 than it forecast in its October 2020 World Economic Outlook due to the second wave of coronavirus infections. "A prolonged health crisis and a slow recovery… would lead to tighter financial conditions and increased private and public sector vulnerabilities, while significant labor market hysteresis would increase inequality and poverty," the IMF said.
"Taken together, these 'scarring' effects would also depress the growth potential of the euro area." Also ongoing negotiations over the U.K.'s future relationship with the EU and the potential escalation of trade tensions between the two, could add to uncertainty IMF warned. British foreign minister Dominic Raab said over the weekend that Britain and the EU were heading into a "very significant" week, as talks over a trade deal entered their final days with both sides remaining divided on key issues. During today's session DAX 30 fell 0.33%, CAC40 dropped 1.42% and FTSE 100 finished 1.6% lower. On the monthly basis DAX 30 rose 15% which is its best performance since 2003. CAC 40, FTSE MIB and IBEX 35 all gained more than 20%, their strongest increases on record.

US indexes are trading lower on Monday as investors booked some profits after a rally last week that sent the S&P500 and the Nasdaq to record close. Dow Jones dropped 1.1%, S&P 500 slid 0.6%, and the Nasdaq is trading 0.3% lower. Still Dow Jones is on track to gain almost 12% in November, the most since 1987 and the S&P 500 and the Nasdaq are up 10.8% and 11.7%, respectively, the most since April as promising vaccine developments and a smooth transition of power in the US lifted confidence of a smooth economic reopening. US Health Secretary Alex Azar on Monday said the first two COVID-19 vaccines  could be available to Americans before Christmas. Meanwhile Moderna (MRNA.US) stock jumped 17% today after company  announced that new trial data showed its Covid-19 vaccine  was more than 94% effective. The company is planning to ask the FDA for emergency clearance later in the day.

 

US crude futures are  trading 1.6% lower while the international benchmark Brent contract fell nearly 1.5% as OPEC has postponed for tomorrow decision about whether to extend oil output cuts, according to officials familiar with the matter. OPEC warned  that the "immense challenges" caused by the Covid-19 pandemic were likely to persist into 2021. Meanwhile Reuters, citing Algeria’s state news agency APS, reported that OPEC members had reached a consensus to extend the production curbs for three months, but further talks were needed to convince members of the OPEC+ alliance at their meeting on Tuesday to back the policy. Elsewhere, gold futures fell over 0.50% around $ 1,778 / oz, while silver lost nearly 0.6% and is trading around $22.56 /oz.

USDCHF – pair broke above the downward trendline. Should buyers manage to uphold momentum, then resistance at 0.9080 may come into play. However, if sellers will manage to regain control, then another downward impulse towards support at 0.9031 could be launched. Source: xStation5

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