The S&P 500 futures went back 0.3% Tuesday after closing at an all-time high following the news of Moderna’s vaccine being 94.5% effective. The tech-tied Nasdaq 100 climbed 0.35% after news of Elon Musk’s Tesla joining the S&P 500 on December 21. The news left Tesla’s stock soaring as they rocketed more than 10% in after-hours trading.
The Stoxx Europe 600 Index dropped 0.1% as travel firms and banks posted huge declines. The MSCI Asia Pacific Index increased by 0.2% while the MSCI Emerging Market Index plunged 0.2%.
Bonds
As for the bonds market, the yield on 10-year Treasuries fell to 0.89% while the yield on two-year Treasuries is up to 0.18%. The 10-year yields in Germany and Britain are down to -0.55% and 0.343% respectively. Japan’s 10-year yield increased to 0.025%.
Commodities
The commodities rose with the WTI crude going up 0.5% to $41.56 per barrel and Brent crude adding 0.6% to $44.10 per barrel. Gold gained 0.1% to $1,891.69 per ounce.
Currencies
Global currencies rallied against the U.S dollar as it weakens to more than a 1-week low.
Euro Jumps
The euro climbed on positive vaccine news against the dollar on Tuesday. However, Europe’s shared currency fell as Britain is expected to reach an agreement in the Brexit deal by early next week.
Chinese Yuan Hits Highest Since June 2018
The safe-harbor Chinese yuan hit the highest level since June 2018. The currency soared 0.5% to 6.55 per dollar. The optimism is owed to the positive relationship between the U.S and China as well as the economy’s recovery from the pandemic. The premium offered on bonds by the Chinese government over American debt is also record-setting, resulting in foreign inflows.
The yuan has leaped 9.4% since May, recovering more than half of the decline resulting from clashes between Washington and Beijing on issues related to trade and intellectual property protection.
As of 5:15 p.m in Shanghai, the onshore yuan slightly trimmed gains while still being up by 0.49% at 6.5505. The offshore rate surged 0.43% to 6.5459, the highest since June 2018.
The Australian & New Zealand Dollar Gain
As for the Australian dollar, it held onto gains overnight against the U.S dollar while the New Zealand dollar dropped after hitting its highest in more than a year as investors hoped that interest rates will not be reduced further.
Coronavirus cases have been surging all around the world including the U.S, Britain, Europe, and Japan, leading to uncertainty about the future economic outlook.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
