FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
ETX Capital information and reviews
ETX Capital
Markets.com information and reviews
FxPro information and reviews
47 665.62

Taking stock: Equity bulls wishing for mo' of November

1 December 2020

US stocks fell on Monday, with the dip capping the end of an otherwise spectacular November for equities. The S&P 500 posted a 10.75 percent advance in November, its largest monthly gain since April, while the Dow Jones index’s 11.84 percent advance was its biggest jump for a single month since January 1987!

Given such lofty heights, it was only natural that the momentum would ease. After all, from the smallest ripples to the largest tsunamis, they all eventually break.

Still, it’s important to take stock of the massive surge in equities for the month. The MSCI ACWI index, which measures the performance of global stocks, posted an unprecedented monthly gain of 12.21 percent; its largest single-month climb on record.

Equity markets clearly took the contentious US election in stride, and risk-on sentiment was sent surging as several Covid-19 vaccine candidates took massive strides towards being ready for rollout. Intriguingly, all of these positive developments surrounding the vaccine came on a Monday; at least for the past four consecutive Mondays.

As investors began pricing in a post-pandemic world, sending them flocking to stocks that had been left devastated by the pandemic, that rotation gave fresh legs to US benchmark indices.

However, the rotation play came at the expense of pandemic-darlings in the tech sector, causing the latter to underperform. Still, that didn’t mean tech counters were going to miss out on any of the fun. The Nasdaq 100 index also can boast of a double-digit monthly advance, though last month’s 11 percent was just 0.05 percentage points shy of the monthly gain registered for August.

And the Nasdaq 100 looks set to climb higher into unprecedented territory before 2020 is over, with futures pointing north at the time of writing.

Yet it looks like a new risk-on wave is forming at the onset of December, with S&P 500 futures climbing during the Asian session on Tuesday. Recall that the S&P 500 posted a new record high on November 27th, before Monday’s slip. And the rally doesn’t appear to be quite over.

The upside for US stocks is further bolstered by the ultra-accommodative stance by the Federal Reserve, with Fed chair Jerome Powell like to reiterate that the central bank will do all it can to aid the US economic recovery. Powell is set for a hearing before the Senate Banking Committee later on Tuesday.

Although the still-rising Covid-19 cases in the US presents some near-term downside risks, markets are willing to look past that trend and focus on the prospects of life after Covid-19. As long as such hopes are not doused, equities are set to find plenty more suitors to chase prices higher.



Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Wall Street loses altitude. Dollar grinds higher
Wall Street loses altitude. Dollar grinds higher

The relentless rally in US stock markets took a breather last week. Wall Street suffered a rare pullback as investors took some profits off the table, positioning...

13 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.