• Biden wins presidency
• Global Covid-19 cases top 50M, US infections crossed 10M
Global stocks rallied on Monday after US pharmaceutical giant Pfizer and German biotech firm BioNTech announced their experimental coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection, hailing the development as “a great day for science and humanity.” This is good news, especially considering that the total number of COVID-19 infections worldwide surpassed 50 million and US alone recorded so far over 10 million cases. Recently US is reporting over 100,000 new infections per day, however the third wave of the pandemic accelerates also in other major economies around the world. Also investors welcomed the news that Joe Biden will become the next President of the United States. Market participants hope that new administration will bring more predictability and stability. Still, incumbent President Donald Trump refuses to accept the outcome of the election and launched lawsuits, claiming that voting had been rigged in many states. Meanwhile Republicans most likely will control the Senate, which means that Biden's administration will have a difficult task to raise taxes and expand regulation on businesses. During today's session Dax 30 rose 4.94%, CAC 40 added 7.57% and FTSE 100 finished 4.67% higher. Across the ocean, Dow Jones is trading 4.4% higher, S&P500 rose over 3% and Nasdaq added 0.80%. Shares of many technological and biotechnology companies like Zoom Video, Amazon, Biogen, Netflix, Facebook struggle today as traders rotated out of so-called stay-at-home stocks which were most popular during the pandemic and into beaten-down companies from aviation and travel sectors. Carnival’s stock jumped 30%, while Norwegian and Royal Caribbean added roughly 22% and 24%, respectively. For airlines, United jumped 15%, while American, Delta and Southwest also saw double-digit gains. AMC Entertainment stock soared more than 72%. Also energy and financial stocks moved higher following news regarding coronavirus vaccine. JPMorgan and Citigroup shares both rose about 10%, while Valero and National Oilwell Varco stocks rose 27% and 24%, respectively. Also Exxon and Chevron also rose over 10%.
USDJPY – pair bounced off the support at 103.16 and moved sharply higher on vaccine news. Currently pair is testing downward trendline and 105.42 resistance level. Should upbeat moods prevail, then next resistance at 106.72 may come into play. Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
