Stocks Poised for Record Month on Vaccine Optimism

Global stock markets are on the cusp of finishing a record-breaking month sparked by major progress toward a coronavirus vaccine. The MSCI World Index has soared 13% in November, the best performance on record. Trading was muted on Monday, with European stocks and U.S. futures mixed.

“I suspect that investors have become cautious after big gains in the last few weeks that were driven by the vaccine news,” said Peter Rosenstreich, head of market strategy at Swissquote Bank. “It’s a big positive as it’s really provided an endgame for Covid-19.”

The rapid pace to a vaccine has given investors the confidence to price in a return to normalcy and faster economic growth, helping lift shares of companies that were hardest hit by the pandemic. Over the weekend, U.S. Surgeon General Jerome Adams said the federal government hopes to quickly review and approve requests from two drugmakers for emergency approval of their Covid-19 vaccines. On Monday, the rotation in equities showed signs of a slight reversal. Futures on the tech-heavy Nasdaq 100 Index were higher, while small-caps, banks and energy producers dropped. The MSCI Asia Pacific Index sank 1.6%, the biggest loss in a month.

The risk-on mood across markets has hurt demand for haven assets. Gold extended a retreat on Monday and is on course for its largest monthly decline in four years. The dollar is poised for a 2.7% drop in November. Oil was little changed in New York. An informal meeting of OPEC+ ministers didn’t reach an agreement on whether to delay January’s oil-output increase. A full meeting of the cartel is planned for later today.

Stocks Poised for Record Month on Vaccine Optimism: Markets Wrap, Bloomberg, Nov 30