Global Stocks Flat to Positive on Last Trading Day for November
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- A solid month for global equities
- Precious metals affected directly by vaccine developments
European stocks and US futures are seeking a direction at the end of a record month as investors monitor progress towards coronavirus vaccine approvals. Markets across Europe are trading mixed on Monday, with the UK’s FTSE 100 positive by 0.30%. The German DAX is up by 0.25%, while the French CAC40 is lower by 0.20%. US equity futures are consistently pointing to the downside in Monday’s pre-market hours.
However, by historical standards, the month of November was considerably strong for both European and US equities. Today’s trading session sees a continuation of the same narrative that led stocks through November as investors seem to show a smaller risk appetite. Monday marks the end of a very strong month for global equities as the market celebrated the discovery of coronavirus vaccines and the start of the official transition from a Trump government to a Biden administration.
The Dow Jones Industrial Average is substantially higher for November, up 13% month to date, followed by the S&P500 up 12% month to date. European equities are also heavily bid with the German DAX up over 16% month to date, while the French CAC40 is up 21% and the UK’s FTSE100 has risen a bit over 16% for the same period.
Today’s trading doesn’t feature any significant events on the agenda. Going into the currency market, the EURUSD approaches a 3-month high as price is now hovering around 1.1980, close to the Sep 1 peak of 1.2011. The exchange rate has been on a bull run in November, up 3.20% month to date. The EUR is also bullish for the month against the Japanese Yen. The US dollar has been declining against the Canadian dollar and the Swiss franc, posting losses of 2.80% and 1.80% respectively on a month to date basis.
Vaccine Developments Lead to Declines in the Precious Metals Market
The precious metals market has been significantly affected by the positive developments toward a vaccine. For November, gold and silver suffered declines of 6.90% and 9.00% respectively. Both assets were strongly favored by investors until the news of a coronavirus vaccine was released in the first week of November.
Cryptocurrency Market Outlook
Heading to cryptocurrencies, digital assets led by Bitcoin enjoyed a strong boost in November. Bitcoin gained over 41% for the month and peaked at a high of over $19,200, a few hundred dollars shy of reaching the all-time high from December 2017. Total cryptocurrency market capitalization in November jumped over 37% from roughly $400B to $550B.
Other Market Events
As market participants prepare to enter the final month of 2020, a lot is to be revealed that can drive assets further to the upside or lower, depending on how developments unfold. The market will be watching how main events across the globe will play out in December, especially the Brexit saga. Other key events include the Presidential shift in the US along with a possible stimulus bill, the coronavirus relief package by the EU that is currently blocked by Hungary’s and Poland’s vetoes and of course, the lockdowns and their unfolding as countries approach the Christmas holidays. Here we bring you tips for trading the holiday season.