Stocks are advancing again this morning, following Asian markets higher, after the US FDA granted full approval of the Pfizer/BioNTech vaccine for COVID-19. Sentiment has also been lifted by Dallas Fed President Robert Kaplan who said on Friday he would reconsider his views on a taper if data showed the current Covid surge was causing the economy to slow.
Concerns that the Fed would soon begin tapering prompted the recent sell-off but those fears abated a little after data showed US private sector growth slowed in August to an 8-month low.
Focus is now on the Jackson Hole Symposium later in the week and particularly Jerome Powell’s speech on Friday where he is expected to indicate the timing of the central bank’s reduction in the bond-buying program.
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