By Han Tan, Market Analyst, ForexTime
US benchmark stock indices are set for gains when markets open today, fuelled by positive developments surrounding a Covid-19 vaccine. Russia announced today that it has registered the world’s first Covid-19 vaccine, while drug makers such as BioNTech, Novavax, and Inovio Pharmaceuticals say they are moving closer to their respective vaccines, with these stocks making some of the biggest pre-market moves.
Such developments are pushing the SP500 minis to about 0.5 percent, or a mere 18 points, away from its record high.
The headlines have also contributed to Gold prices hurtling back below the psychologically-important $2000 level. Bullion has fallen by some 2.3 percent so far today, which would mark its biggest single-day move since April. The news may have spurred on the technical pullback needed to bring Gold prices away from overbought territory. With a flood of US Treasuries being brought to market this week, there could also be some profit-taking in Bullion prices at play.
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Risk appetite has also seen other tailwinds, including news that US President Donald Trump is considering a tax cut for capital gains. Investors outlook surrounding Germany, Europe’s largest economy, over the next 6 months also registered a positive surprise. Such headlines make for a risk-on mood, emboldening investors who continue to remain optimistic over the global economic recovery.
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