The markets today are returning to fear of the pandemic.
The global equity rally showed signs of stalling on Thursday 12 November. Investors are considering a deterioration in the Covid-19 situation in many large economies around the world.
The vaccine effect has shown contrasting and still uncertain effectiveness on stock market earnings: what is happening in the markets today?
The advancing pandemic weighs on today’s markets
The Asian equities they have reduced their earnings. The MSCI index rose 0.06% to 609.41, which is close to its January 2018 high of 617.12. China’s .CSI300 stocks erased early gains and fell 0.02%. Shares in Japan hit a 29-year high.
In general, stocks in Asia Pacific were little modified in trading on Thursday after the rebound of tech stocks on Wall Street while the recent rotation towards the cyclicals – which would benefit from an economic recovery – has stopped.
US stocks have indeed been mixed.
The Dow Jones Industrial Average fell 0.08% on Wednesday, but the Nasdaq closed 2% higher and the S&P 500 gained 0.77%.
European equities are expected to open lower on Thursday, bucking a positive trend seen in Asia and the US as tech stocks rallied in the previous session.
Second IG, the London FTSE will open 71 points down at 6,316, the German DAX with 115 points down to 13,113, the French CAC 40 52 points down to 5,400 and the Italian FTSE MIB 145 points down to 20,776.
The pandemic and realistic fears of its advance dominate investor sentiment for months to come.
Daiju Aoki of UBS Securities of Japan commented on the day:
“Markets are waiting for more news on the virus, so it’s hard for investors shortare Actions. Expectations may keep actions going for another few weeks, but there are still doubts about a vaccine’s effectiveness and US fiscal policy. We may see a correction early next year “
Concerns of further economic hardship could threaten a nearly 10% rise in global equities this month. Investors have sought refuge in companies with solid balance sheets and a suite of products that benefit from social distancing.
Meanwhile, on the vaccine front Modern said his trial met a key goal in analyzing the effectiveness of the treatment. The time factor, still long, for the availability of safe treatments, however, is giving way to fears about the advance of the virus, even for the markets.
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