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Maj. European indices end the session with gains across the board

German DAX and France’s CAC rise by about 0.5%

The major European indices are in the session with gains across the board. Yesterday the results were mixed with the UK and Spain indices moving lower.

The provisional closes are showing:
  • German DAX, +0.5%
  • France’s CAC, +0.5%
  • UK’s FTSE 100, +0.4%
  • Spain’s Ibex, +0.5%
  • Italy’s FTSE MIB, +0.8%
In other markets as London/European traders look to exit:
  • Spot gold is trading up $0.40 or 0.02% at $1880.77
  • spot silver is trading up $0.05 or 0.23% at $24.54
  • WTI crude oil futures are trading up $0.58 or 1.4% at $42.01
In the US debt market yields have inched higher with the 10 year yield up 1.3 basis points:
German DAX and France's CAC rise by about _0.5%In the US stock market, the Dow is leading the way with a modest 0.37% gain. The NASDAQ lags and trades near unhanged.
  • S&P index up 5.4 points or 0.15% at 3614.90
  • NASDAQ index -2.8 points or -0.02% at 11896.78
  • Dow industrial average +111 points or 0.3% at 29898

US stocks set to open mixed

Pfizer news a help. Boeing gets approval from FAA to resume flights

US stocks are set to open mixed. The NASDAQ index is looking for lower. The S&P is near unchanged in the Dow is marginally higher. Pfizer vaccine news helped a little but the gains are being eroded. Also, Boeing received FAA approval to resume its 737 Max flights.

Carnival Cruise Lines said they canceled cruises in the beginning of 2021 (January 1 to January 31).

The Dow industrial average is some 216 points away from the 30,000 milestone.

Another round of vaccine optimism rinse and repeat

But to a lesser degree and perhaps shorter lasting timeframe

Pfizer passed the final hurdle of meeting the safety requirements to apply for emergency-use approval, but the announcement also came with a bit of an attempt to try and one up Moderna as they claim that their vaccine is 95% effective upon final analysis.
Dow
Either way, the market is responding in the only way it knows how to. Dow futures pulled a little higher and equities in general are more buoyant after the news.
However, the gains are more modest and to a lesser degree than the Pfizer announcement last week and the Moderna announcement from Monday.
Treasury yields pared its earlier decline to move up to 0.87% but is now keeping little changed around 0.86% as we start to get towards North American trading.
In the currencies space though, there has been little to no impact as major currencies are largely still sticking with the theme from earlier i.e. slight dollar weakness but not pushing the agenda beyond key technical levels across the board.
It looks like the market appetite for any further vaccine optimism is starting to wear thin, and that’s not a good sign if the negative virus developments continue to keep up over the next few days/weeks as the push and pull continues in trading currently.

The bond market continues to fade the vaccine optimism

10-year Treasury yields are down by 2 bps to 0.835%

USGG10YR

The bond market is continuing to hint at more caution as yields are slipping further following the euphoria from the Pfizer and Moderna vaccine optimism in the past week.
The former saw 10-year Treasury yields jump up by nearly 15 bps last week but we are seeing most of that faded already, with the jump from the latter earlier this Monday not really having the same effect as we see yields fall further on the session.
With tighter restrictions being implemented in the US and Europe, not to mention with no stimulus aid in sight, there is still some degree of uncertainty in the market in the short-term; despite there being light at the end of the pandemic tunnel.
In turn, this is dragging USD/JPY lower with the pair now testing 104.00 to start European morning trade.

US FDA has approved an at-home coronavirus self-testing kit

Test is for prescription home use with self-collected nasal swab specimens in individuals aged 14 and older who are suspected of COVID-19 by their healthcare provider.

This test is also authorized for use at certain the point of care (POC), in patient care settings
This is the Lucira COVID-19 All-In-One Test Kit from Lucira Health.
Not a vaccine nor a cure, but perhaps of assistance to those who have to conduct regular tests –  healthcare workers, first responders and the like. Still, note it must be obtained via prescription.

China’s Sinovac coronavirus vaccine candidate – trials show it appears to be safe

COVID-19 China vaccine candidate update via Reuters:

 

 

  •  Sinovac’s covid-19 vaccine appeared to be safe and well-tolerated at all tested doses – phase i/ii trial results
  • findings from phase iii will be crucial to determine Coronavac’s immune response – study
  • Sinovac’s vaccine Coronavac suitable for emergency use during the pandemic, researchers say
  • antibody levels induced by the coronavac vaccine were lower than those seen in people who had recovered from covid-19 – study

 

more to come