Asia Morning: Dow Up Over 800 Points on Vaccine Optimism

Wall Street sign with a building in background
On Monday, U.S. stocks gave up most of early gains to close mixed. The Dow Jones Industrial Average soared over 1600 points at open but closed 834 points higher (+2.95%) at 29158. The S&P 500 rose 41 points (+1.17%) to 3550, while the Nasdaq 100 tumbled 260 points (-2.16%) to 11830.


S&P 500 Index (Daily Chart) : Bullish Gap

Sources: GAIN Capital, TradingView


Market sentiment was boosted by the fact that a COVID-19 vaccine being developed by Pfizer (PFE +7.68%) and BioNTech (BNTX +13.91%) was found to be over 90% effective. 

Energy (+14.22%), Banks (+13.2%) and Insurance (+5.63%) sectors performed the best, while Retailing (-3.3%), Household & Personal Products (-3.1%) and Semiconductors & Semiconductor Equipment (-1.83%) sectors lagged behind. Energy companies such as Diamondback Energy (FANG +30.96%), National Oilwell Varco (NOV +27.33%) and Valero Energy (VLO +31.2%) became top gainers amid an 8% jumped in oil prices.

Amazon.com (AMZN -5.06%) slid.

Approximately 72% (75% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 62% (68% in the prior session) were trading above their 20-day moving average.

European stocks closed substantially higher. The Stoxx Europe 600 jumped 3.98%, Germany's DAX surged 4.94%, France's CAC 40 soared 7.57%, and the U.K.'s FTSE 100 was up 4.67%.

U.S. Treasury bonds encountered a selloff as positive news on Pfizer's COVID-19 vaccine drove investors into riskier assets such as stocks. The benchmark 10-year Treasury yield surged to 0.955% from 0.817% Friday.

Spot gold plunged $83 (-4.29%) to $1,867 an ounce..

U.S. WTI crude futures (December) advanced $2.82 (+7.59%) to $39.96 a barrel.

The U.S. dollar regained some strength against other major currencies, as a breakthrough in coronavirus vaccine diminished expectations of more economic stimulus measures. The ICE Dollar Index rebounded 0.65% to 92.82.

The Japanese yen and the Swiss franc were the worst performers among major currencies. USD/JPY soared 1.95% to 105.37, and USD/CHF rebounded 1.39% to 0.9127.

EUR/USD slid 0.50% to 1.1813 halting a four-day rally.

GBP/USD climbed for a third session as it edged up to 1.3165 from 1.3159 Friday.

AUD/USD rose 0.33% to 0.7282 (day-high at 0.7340).

USD/CAD once lost the 1.3000 level before closing at 1.3008, down 0.23% on day.

Related tags: Commodities Equities Indices

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