In yesterday’s trading, the market remained with the optimistic news of Pfizer here. US stocks saw pushes and pulls, but the S&P 500 closed just below record highs at the end. Meanwhile, Treasury yields kept the rebound on with 10-year yields now above 1.50%.
The general atmosphere today is however slightly warmer. US futures are slightly weaker while major currencies show very little appetite. On the latter, narrow ranges still prevail for the most part today.
As much as Pfizer’s discovery is encouraging, it should be remembered that it relates to a preliminary study based on laboratory tests. The firm was quick to clarify that there would be more details to follow in the coming weeks.
With that in mind, there might be room for more volatility surges in the interim. Particularly with some food for thought here, at least for stocks.
Unless there are more headlines on viruses to deal with, expect the market to slowly calm down and turn the tune to focus on the next key central bank meetings next week. The Fed, SNB, BOE and ECB are all on the agenda.
0700 GMT – Trade balance Germany October
General trading conditions are still slowly improving as a parallel trend in economic recovery. This should still be the case in the coming months until the end of the year despite the many challenges.
That’s all for the upcoming session. I wish you the best of the days ahead and good luck with your trading! Stay safe there.