Here is what you need to know on Tuesday, November 10:
Markets are taking a breather from the euphoria seen on Monday after Pfizer announced a breakthrough on a coronavirus vaccine. The dollar is dropping alongside bond yields. Speculation about President-elect Biden’s economic team and President Trump’s legal fight to turn the election results continue.
Coronavirus vaccine: American pharma giant Pfizer and Germany’s BioNTech announced their COVID-19 vaccine is 90% efficient, triggering a massive rally in markets. The approach used for developing immunization is also used by three other efforts, providing hope for quicker distribution. However, it may take long winter months until a significant part of the population can receive the vaccine.
See Pfizer’s success promising for three other efforts, rally may have only just begun
The safe-haven dollar initially dropped but then shot higher as yields on US Treasuries surged. Gold and the yen were the biggest losers. The trends are partially reversed on Tuesday with stocks and the dollar retreating, while the precious metal and the Japanese currency are on the rise.
US politics: President-elect Joe Biden has unveiled his coronavirus task force and is set to provide additional details about his plans later on Tuesday. Speculation is rife about the nomination of a Treasury Secretary, with Federal Reserve Governor Lael Brainard in the lead.
President Donald Trump and most Republican senators have refused to concede and plan to ramp up legal challenges. So far, Trump has yet to present evidence to claims of fraud. Most of the counting has been completed and additional meaningful results may come toward the end of the week.
US coronavirus cases and deaths continue rising, while hospitalizations have topped 59,000, the highest since July 25. US authorities approved Eli Lily’s covid antibody drug that is set to reduce admissions to the hospital. Biden warned of a “dark winter”
Brexit: The House of Lords rejected parts of the government’s Internal Markets Bill which violate the Withdrawal Agreement. The upper chamber can only delay its approval, and Prime Minister Boris Johnson is set to push through with the controversial legislation. Talks between EU and UK representatives continue in London.
The UK Claimant Count Change surprised with a drop of 29,800 in October and wage growth accelerated to 1.3% in September, both beating estimates, and supporting the pound.
EUR/USD has retreated from its high above 1.19 amid the market see-saw and as most of the continent remains under restrictions. Portugal and Hungary were the latest to slap measures, while officials in France see a relatively mild impact on the economy, at least in comparison to the spring lockdown. The German ZEW Economic Sentiment is set to show a drop in business confidence.
Oil prices shot higher amid the optimism about a vaccine, and WTI is currently consolidating around $40.
Bitcoin has stabilized above $15,000 after several turbulent days. Ethereum is holding onto gains near $450.
2020 Elections: Markets are cheering, but what exactly? Some answers and what’s next
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