US Stock Futures Surge as Investors Brush Aside COVID19 Concerns

Equities

Major US stock index futures kicked off the week on a stronger note to continue Friday's solid performance. Investors ignored the spikes in coronavirus confirmed cases around the globe and their implications. On Friday, the Wall Street Journal reported that Pfizer and BioNTech's COVID19 vaccine is expected to be ready for approval by year-end. If the vaccines get the needed approvals, the companies are willing to produce 100 million doses by the end of 2020, and 1.2 billion doses by the end of 2021. The Dow Jones Industrial Average futures rose to 26213, the S&P500 futures rallied to 3202, and Nasdaq futures advanced to a fresh record high of 10915.

USD

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 96.39 amid enhanced risk sentiment. The positive news over the vaccine from Pfizer and BioNTech supported the flow to riskier assets. The EURUSD inched higher to $1.1336, the GBPUSD rallied to $1.2666, and the risk-sensitive AUDUSD rose to $0.6984.

Metals

Gold prices continued to trade sideways near their highest levels since 2011, awaiting fresh fundamental drivers. The safe heaven bullion is finding support from the rising COVID19 cases around the world, but also hopes of a vaccine and economic recovery are boosting the flow to riskier instruments. The price of a gold ounce is trading near $1805, the price of a silver ounce soared to $19.09, the highest since early September, and palladium futures hit a five-week high of $2019.

Oil

Oil prices eased slightly, surrendering partial gains earned on Friday. Late last week, prices rallied as the International Energy Agency revised higher the oil demand for 2020 by 400,000 barrels per day. Currently, market participants are looking forward to a technical meeting for OPEC, which could recommend easing supply cuts. The West Texas Intermediate crude August delivery dropped to $39.95, and Brent blend September delivery fell to $42.65.

Major Economic Events

Disclaimer

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