Monday 9th November: UK and European stocks opened higher this morning…
- ..following Joe Biden’s presidential election win. Later in the day U.S firm Pfizer and German firm BioNTech announced that their coronavirus vaccine was more than 90% effective in preventing Covid-19. This sent stock-markets sharply higher again.
- Last week, the Bank of England launched a bigger than expected stimulus package and lifted its quantitative easing program by £150 billion. At the same time it has greatly downgraded its economics forecasts thinking the economy will shrink by 11 per cent in 2020.
- England started a nationwide lockdown that will be in place until early December.
- Our Breadth Indicator turned neutral from negative, and our Momentum Indicator, although still negative, ticked up.
Monday 9th November: The US stock-market has opened sharply higher today following Joe Biden’s presidential election win and very positive coronavirus vaccine news.
- President Trump is still refusing to concede the election, claiming it’s “far from over” and is launching lawsuits in several states. It seems unlikely that Democrats will take back control of the Senate and a tiny majority in the House means pushing through reforms will be difficult.
- Federal Reserve policymakers met last week but announced no changes to monetary policy.
- Jobs data for October showed a better-than-expected 638,000 jobs were added last month.
- Our Breadth Indicator turned back to positive last week and our Momentum Indicator, although still positive, ticked lower again.
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