Russell 2000, Dow Jones To Rise On Vaccine Results, Biden Transition

DOW JONES INDUSTRIAL AVERAGE, RUSSELL 200 INDEX, CORONAVIRUS VACCINE, BIDEN TRANSITION – TALKING POINTS:

  • Equity markets largely gained during APAC trade as the US presidential transition process kicked-off.
  • Vaccine progress and resilient economic data may intensify rotation into pandemic-sensitive equities.
  • Dow Jones Industrial Average and Russell 2000 indices positioned to extend gains in the near term.

ASIA-PACIFIC RECAP

Asian equity markets climbed higher during Asia-Pacific trade, after the presidential transition process was triggered by the General Services Administration.

Australia’s ASX 200 index rose 1.26% while the Nikkei 225 surged 2.5%, on the back of positive vaccine news from AstraZeneca (AZN).

China’s CSI 300 index dipped 0.6% after a fresh outbreak of coronavirus cases soured regional market sentiment.

In FX markets, the haven-associated USD and JPY continued to slide lower against their major counterparts, while the cyclically-sensitive NOK, CAD and AUD largely outperformed.

The New Zealand Dollar surged to its highest levels in over two years after the local government called for the Reserve Bank of New Zealand to add housing prices to its remit.

Gold and silver continued to lose ground as yields on US 10-year Treasuries held steady at 86 basis points (GLD, SLV).

Looking ahead, the US consumer confidence release for November and housing price data for the month of September headline the economic docket alongside speeches from European Central Bank President Christine Lagarde and several members of the Federal Reserve.

Russell 2000, Dow Jones to Rise on Vaccine Results, Biden Transition

Market reaction chart created using Tradingview

RESILIENT DATA, VACCINE NEWS TO INTENSIFY ROTATION TRADE

The US small-cap benchmark Russell 2000 (IWM) has stormed higher this month, buoyed by a flurry of positive vaccine results and resilient economic data.

The index has outperformed the S&P 500Nasdaq and Dow Jones as investors rotate capital into those sectors most impacted by the coronavirus pandemic.

1 2 3 4
View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.