Market sentiment analysis:
- Trader confidence remains high in global stock markets despite early signs of profit-taking after Monday’s surge.
- Sentiment continues to be boosted by hopes that Pfizer’s successful coronavirus vaccine trial brings a recovery from the pandemic closer.
Traders confident of economic recovery
Traders remain confident that Pfizer’s successful vaccine trial represents a breakthrough in the battle against the coronavirus pandemic, lifting global stock market indexes further Tuesday after Monday’s surge. While signs of profit-taking began to emerge early in Europe, that soon gave way to further buying.
So-called value stocks – shares in companies like airlines that have been hardest hit – continue to benefit most, at the expense of shares in those that have profited from the pandemic such as Zoom and Netflix. Confidence also rose in commodities like oil[1] that should gain most from an economic recovery but it was indexes like London’s FTSE 100[2] that rallied hardest.
FTSE 100 Price Chart, One-Hour Timeframe (November 2-10, 2020)
Source: IG (You can click on it for a larger image)
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar[3] this week, at the IG Client Sentiment page[4] on the DailyFX website[5], and at the IG Client Sentiment reports[6] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[7] podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
DailyFX[8] provides forex news and technical analysis on the trends that influence the global currency markets.
