Stocks Calm After Vaccine Euphoria
Fiona Cincotta November 10, 2020 7:26 PM
Vaccine euphoria sent European stocks to 8-month highs on Monday. Wall Street surged to record highs on vaccine optimism, before closing off the highs. A calmer more questioning mood is dominating on Tuesday.
Vaccine euphoria sent European stocks to 8-month highs. Wall Street surged to record highs on vaccine optimism, before closing off the highs. A calmer more questioning mood is dominating on Tuesday as European bourses are heading out of the blocks mixed as the market acknowledges that there are still many questions surrounding Pfizer’s vaccine announcement.
The unemployment rate jumped higher to 4.8% in the three months to September, up from 4.5% in August as the covid pandemic continued to hit the labour market. This was even before new lockdown restrictions were brought in. The number of people in work fell by 247,000 the largest annual decrease in over a decade.
Unemployment marked its fastest quarterly increase since 2009 financial crisis over the end of the summer, with 1.6 million people out of work between July – September.
Joblessness has pushed higher and a string of well-known companies, such as Sainsbury last week have announced large scale job cuts in recent weeks and months.
The disappointing data comes after the Chancellor extended the government’s furlough scheme just as it was running out. It seems that the lastminute extension until March was too last minute for many companies, which had already taken decisions regarding the future of their workforce and head count.
GBPUSD trades +0.15% ticking a few pips lower on the release. Instead the Pound remains broadly supported by Brexit optimism. Reports of progress between the EU and the UK suggests that a trade deal could still be achieved. With Biden entering the White House and a quick trade deal with the US looking less likely Boris Johnson will now have extra motivation to get a deal done.
With a less confrontational President heading to the White House, a covid vaccine in the wings we just need a Brexit trade deal and 2021 is looking like a significantly better place that 2020!
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.