Financial Markets Daily Report 11 November 2020
Investors traded in a risk-on mood in yesterday's session as markets still digested this week's announcement of a breakthrough in the search for a Covid-19 vaccine.
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- Investors traded in a risk-on mood in yesterday's session as markets still digested this week's announcement of a breakthrough in the search for a Covid-19 vaccine. However, sentiment was somewhat more cautious as analysts pointed to possible difficulties in production capacity, storage and distribution of the vaccine.
- In Europe, the Eurostoxx50 was up 1%, mainly led by banks, which have benefited from the recent steepening of yield curves. Meanwhile, sovereign peripheral spreads continued tightening as core yields rose.
- In the United States, losses in technology companies that have been winners during the pandemic outweighed gains in other stocks, and the S&P 500 was slightly down on the day. Amazon's shares fell 3.5%, while Zoom's shares dropped 9%. The US Treasury yield curve continued steepening as 10-year bond yields rose 4 basis points.
- In oil markets, the barrel of Brent continued making gains and stood at $43.6, a 2.9% rise on the day.