The mood on the markets again seems to be very good, among other things due to macroeconomic data from China and information about the coronavirus vaccine. Moderna company has applied for permission to perform the first vaccinations.
The beginning of December seems to bring growth on the world's major stock exchanges, and this is despite a very significant increase in stock prices in November. German DAX or French CAC40 are growing by almost 1%. British FTSE 100 is growing by more than 1.6%. Futures contracts in the United States are also listed in green. Futures on DJIA gained almost 0.3 percent, on Nasdaq 100 almost 0.9 percent, and futures on S&P 500 grew by over 1.1 percent. Investors expect the Covid-19 vaccine to be available soon, and Moderna will join Pfizer in a fast-acting vaccine permit in December.
The Chinese economy growing strongly
Data from China also seems to be helping the market bulls. Caixin PMI in November rose to 54.9 from 53.6 points in October. This was the strongest increase in the index since November 2010 and also for the seventh month in a row, when activity in factories in China was growing. Therefore, it seems that the economic recovery in the country is gaining momentum. Both production and new orders have grown at the fastest rate in a decade, employment has grown the most since May 2011, according to Markit Economics data.
Another key week of brexit negotiations
Uncertainty about brexit is increasing, as no agreement has yet been reached between the EU and the UK. There are statements that suggest that an agreement can be reached by the end of this week. Nevertheless, the EU has announced that it will launch emergency measures on Wednesday or Thursday if it cannot reach an agreement with the UK, Reuters said. Pending a political settlement, the GBP/USD exchange rate is at 1.34, creating an upward trend since late September.
On Thursday, an important decision by OPEC+
This week's key event may be OPEC+'s decision on cutting production and postponing the current limits. OPEC+ postponed talks on production volumes until Thursday, as producers still disagreed on how much oil to produce. Expectations of higher demand for oil in the U.S. and signals from Saudi Arabia led to an increase in the prices of its sales to Asia in January, which contributed to an increase in oil prices on the broad market to about 45,5 USD per barrel.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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