The US pharmaceutical company Pfizer and German-based BioNTech yesterday published promising results for a vaccine against Covid-19, which has shown in broad tests that the vaccine provides more than 90% protection against the novel corona virus. The two pharmaceutical companies now expect to apply for approval with the US Food and Drug Administration (FDA) as early as next week. However, the procedure is still at a very early stage and patience is still required. In addition to the hope for a corona vaccine, the election of Joe Biden as the new US President continued to create a positive mood on the stock markets.
The Dow Jones Industrial and the broad-based S&P 500 rose strongly at the beginning of the week by +2.95% to 29 157.97 points and +1.18% to 3 550.50 points respectively. The picture was different on the Nasdaq technology exchange, where some corona profiteers suffered heavy daily losses. The technology-heavy Nasdaq 100 lost -2.16% on Monday, closing at 11 830.39 points. While the rally on most Asian stock markets has already flattened out considerably, the futures markets for European exchanges are also already signaling lower prices again. A damper on sentiment is the threat of legal action in Washington. The majority leader in the Senate, Mitch McConnell, stressed that President Trump was 100% right to have possible irregularities in voting investigated and to demand recounts.
With the Democrat Joe Biden in the White House, Brussels hopes to improve relations with the US, which were not always easy during the Trump era, and to settle the trade dispute with Washington. EU Vice President and Trade Commissioner Valdis Dombrovskis said that the EU is prepared to withdraw the punitive tariffs that have come into force today at any time, even if the US also suspends its tariffs. However, a unilateral waiver on the part of the EU would be out of the question. At the center of the trade dispute between the EU and the US are above all the state aid for the aircraft manufacturers Airbus and Boeing, but also the US punitive tariffs on steel and aluminum imports introduced in 2018.
The more than 1 000 analysts questioned monthly by the German financial market analysis company Sentix again showed themselves to be more pessimistic in the latest survey against the background of the corona pandemic. The sentiment barometer for the eurozone fell by 1.7 points to minus 10.0 points in November compared to October. This means that the assessment of the economic outlook has deteriorated for the second consecutive month. The financial experts surveyed assessed both the current economic situation and the economic expectations more negatively than in the previous month. On the other hand, the mood is supported by the additional monetary policy measures announced by the ECB for December in order to contain the economic consequences of the second pandemic wave, Sentix commented.
Statements from the British government give hope for a compromise in the negotiations on future relations between London and Brussels. Although there are still differences, especially on the controversial issue of fishing rights, both sides are now prepared to make progress, said British Environment Minister George Eustice.
|02:30||CN||Consumer Prices (October, y/y)||+1.7%|
|02:30||CN||Producer Prices (October, y/y)||-2.1%|
|08:00||UK||Unemployment Rate (October)||4.5%|
|08:45||FR||Industrial Production (September, y/y)||-6.2%|
|11:00||GE||ZEW Expectations (November)||56.1|
|11:00||EZ||ZEW Expectations (November)||52.2|
|11:00||IT||Industrial Production (September, y/y)||-0.3%|
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Source: LGT Bank (Switzerland) Ltd.
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