By Deepta Bolaky
Global equities ended on a mixed note on Wednesday driven by vaccines news and concerns of rising virus cases. European bourses posted modest gains on the back of more positive vaccines updates from Moderna.
In the US share market, major US equities struggled to advance higher as the stimulus gridlock and the rapid surge of the coronavirus outbreak in the US forcing more localised lockdowns and social distancing measures dampened risk sentiment.
Tesla continues its surge by closing 10.2% higher on Wednesday at $486.64 following its earlier announcement on its debut on the S&P 500 while tech giants like Apple, Facebook and Microsoft underperformed with losses above 1%.
In the FX space, the price action of major pairs reflects the uncertainty in the markets as traders balanced the positive vaccine updates against the resurgence of the virus. Major currencies were mixed against the US dollar amid a lack of decisive catalysts in the markets.
On the economic front, attention was on the inflation data in the UK, Eurozone and Canada together with housing data in the US:
Building Permits: Privately-owned housing units authorized by building permits in October were unchanged at a seasonally adjusted annual rate of 1,545,000 but above the October 2019 rate of 1,503,000.
Housing Starts: Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,530,000. This is 4.9 percent above the revised September estimate of 1,459,000 and is 14.2 percent above the October 2019 rate of 1,340,000.
Crude oil prices traded within familiar levels on Wednesday supported by vaccines updates and mixed weekly reports. After a bearish API report where crude oil inventories rose by a much larger-than-expected level, the EIA reported an inventory level below forecasts. The build in inventory was more modest at 0.768M barrels compared to the 1.65M barrels expected. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $41.82 and $44.20 respectively.
The precious metal continues to remain underpinned by the recent positive vaccine news and the gridlock in Washington despite the concerns on the virus front. As of writing, the XAUUSD pair was trading around $1,872.
Source: GO MT4
By Deepta Bolaky
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|Friday, 20 November 2020
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