• Tuesday, Jan 26, 2021
  • Last Update : 08:39 am

Nearly $2 trillion traded on Covid-19 vaccine news

  • Published at 08:53 am November 11th, 2020
stocks
Representational photo Bigstock

In the United States, nearly $500 billion worth of trades went through stock markets on Monday, one of the busiest days since March, when coronavirus lockdown fears rattled financial markets

News of a breakthrough in the race to find a Covid-19 vaccine sparked one of the heaviest trading days since the height of the pandemic crisis, according to early data analysed by Reuters, with nearly $2 trillion changing hands on Monday.

Traders stampeded to the riskier plays in equities,foreign exchange and bond markets after Pfizer Inc released positive data on its vaccine trial, while rotating out of safe havens such as technology stocks, Japanese yen JPY= and top-rated bonds.

“Volumes (are) also surging as programs and baskets go to work to either correct portfolio balances or address margin calls,” said Mark Taylor, sales trader at Mirabaud Securities, highlighting a jump in volumes in the airlines and banking sectors.

In the United States, nearly $500 billion worth of trades went through stock markets on Monday, one of the busiest days since March, when coronavirus lockdown fears rattled financial markets. Europe saw $120 billion traded, according to Refinitiv data.

Value stocks, typically companies that are more sensitive to economic cycles, notched their best one-day performance against their growth-focused peers ever in the United States after Monday’s news of an effective vaccine against the coronavirus.

A similar trend was noticed in the bond and currency markets where volumes matched the panic trading seen during the depths of the market mayhem in March and double that of April when the coronavirus pandemic slammed into markets.

Total turnover for the 33 currency pairs on CLS, a major settler of trades in the currency markets, totalled $627 billion on Monday. Average daily turnover was $707 billion in March and $380 billion in April.

Bond market turnover also jumped. Nearly 170,000 contracts changed hands on the popular front-month German bund futures contracts, 1.5 times this year’s average, according to Refinitiv data.

Total turnover on German government bonds on Monday totalled nearly 9 billion euros, more than the average since the start of October, according to data from Marketaxess, a major trading platform.

“Turnover was about three times the 30-day average daily volumes in cash and very active in the futures space,” said Jimmy Conway, head of EMEA equity trading strategy at Citibank.

55
Facebook 54
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail