US stocks rise thanks to vaccine hopes; the dollar weakens

U.S. stocks rose and the dollar weakened on signs of progress towards a COVID-19 vaccine, with AstraZeneca Plc saying its shot prevented disease in most people.

The S&P 500 has recovered from the weekend selloff, led by companies that will benefit from a return to normal economic activity. Cruise operators, airlines and retailers have posted solid earnings. Pfizer Inc. and Moderna Inc. rose after a US government official said vaccinations could start soon. Regeneron Pharmaceuticals Inc. took a leap after its antibody cocktail got cleared for emergency use. Energy producers have risen with the price of crude oil.

Lately, vaccine successes have added to a risky mood in the markets, and investors have acquired assets that could benefit from the end of lockdowns and travel restrictions. Investors have also begun to anticipate that Congress will reissue an expense account to avoid the economic effects of the new restrictions aimed at slowing the virus.

“Markets continue to look through short-term COVID-19 burdens,” said Robert Greil, chief strategist at Merck Finck Privatbankiers. “With political uncertainty in the United States fading past the end of the looming virus tunnel, slowdowns for markets become less scary in the future.”

Haven’s assets were substantially weaker. The Bloomberg Dollar Spot Index fell to its lowest level since April 2018. Treasuries and gold also fell.

US vaccinations against Covid-19 “hopefully” will begin in less than three weeks, Moncef Slaoui, head of government operation Warp Speed, told CNN’s “State of the Union” on Sunday. An advisory committee from the Food and Drug Administration will meet on December 10 to discuss emergency use authorizations.

In other markets, Asian equities continued to rise. The MSCI Asia Pacific Index has risen 15 over the past 16 trading sessions and South Korean equities hit a record as improving trade data and earnings outlook boosted investor confidence.

Here are some key events coming up:

• The minutes of the latest Federal Open Market Committee meeting are scheduled for Wednesday.
• Unemployment claims, GDP and personal expenses arrive in the United States on Wednesday.
• The UK was expected on Wednesday to deliver government spending plans for next year.
• Thursday will see a political decision and briefing from the Bank of Korea.
• The United States celebrates Thanksgiving on Thursday.
• The week ends with Black Friday, the traditional start of the Christmas shopping season in the United States.

These are the main moves in the markets:

Actions

• The S&P 500 Index rose 0.6% at 9:31 am New York time.
• The Stoxx Europe 600 index rose 0.6 percent.
• The MSCI Asia Pacific Index gained 0.6%.
• The MSCI Emerging Market Index increased by 1.7 percent.

Currencies

• The Bloomberg Dollar Spot Index fell 0.3 percent to 1,143.60.
• The euro gained 0.4% to $ 1.1903.
• The British pound gained 0.9% to $ 1.3394.
• The Japanese yen strengthened 0.1 percent to 103.73 per dollar.

Bonds

• The 10-year Treasury bond yield increased two basis points to 0.85 percent.
• The two-year Treasury bond yield increased by less than one basis point to 0.16 percent.
• Germany’s 10-year yield fell by less than one basis point to -0.57%.
• Britain’s 10-year yield increased by less than one basis point to 0.325%.

Raw material

• West Texas Intermediate crude gained 0.6% to $ 42.15 a barrel.
• Gold had changed little at $ 1,866.39 an ounce.

– With the assistance of Anchalee Worrachate.