Bloomberg
(Bloomberg) -- Global stocks surged to an all-time, Treasuries fell and the dollar weakened after Pfizer Inc. said that its Covid-19 vaccine prevented more than 90% of infections in a large-scale study. The announcement delivers the clearest sign yet that scientists are making progress in developing a vaccine that could end the pandemic. Investors responded by piling into risk assets and dumping havens. Futures on the S&P 500 jumped 3.6%, and contracts on the Russell 2000 Index of small-cap stocks surged 7%. The tech-heavy Nasdaq 100 Index pared gains, but was still up 0.8%. Pfizer’s Covid Vaccine Prevents 90% of Infections in Large StudyThe preliminary results on the vaccine pave the way for the companies to seek an emergency-use authorization from regulators if further research shows the shot is also safe.Pfizer shares extended gains in premarket trading, rising about 7%. American depositary receipts for BioNTech, which is also developing the vaccine, were up about 11%.The announcement heaped fuel on a rally that’s been running for the past week after the U.S. election. Markets have cheered Joe Biden’s win for the presidency, and speculated that it will usher in a better trade relationship with China and another economic stimulus package.There’s precedence for the market’s gains to continue. Since 2000, every time the S&P 500 was higher heading into Election Day, November and December came in green, too. The first years of presidential terms have also been good ones of late. Since 1986, according to Leuthold Group data, they’ve seen average gains of 18.6%.These are some key events coming up:Brexit trade-deal talks between the U.K. and EU continue in London MondayTuesday is the EU’s target date for triggering tariffs on as much as $4 billion of U.S. goods in retaliation over illegal aid to Boeing Co.Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last yearECB President Christine Lagarde, BOE Governor Andrew Bailey and Fed Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.StocksFutures on the S&P 500 Index surged 3.4% as of 12:21 p.m. London time.The Stoxx Europe 600 Index surged 4.5%.The MSCI Asia Pacific Index increased 1.1%.The MSCI Emerging Market Index gained 1.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2% to 1,147.60.The euro increased 0.1% to $1.1885.The British pound rose 0.2% to $1.3179.The Japanese yen weakened 1% to 104.44 per dollar.BondsThe yield on 10-year Treasuries climbed 10 basis points to 0.92%.The yield on two-year Treasuries gained one basis point to 0.17%.Germany’s 10-year yield jumped seven basis points to -0.55%.Britain’s 10-year yield jumped seven basis points to 0.346%.CommoditiesWest Texas Intermediate crude climbed 7.7% to $40.25 a barrelGold weakened 1.9% to $1,915.14 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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