“Turnover was about 3X the 30-day average daily volumes in cash and very active in the futures space“– Paul Ebeling
News of a breakthrough in the race to find a COVID vaccine triggered 1 of the heaviest trading days since the height of the China Virus chaos, according to early data, with $2-T changing hands Monday.
Traders moved to the riskier plays in stocks, foreign exchange and bond markets after Pfizer Inc. (NYSE:PFE) released positive data on its vaccine trial, while rotating out of safe-havens such as tech stocks, 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, highlighting a jump in volumes in the airlines and banking sectors.
In the United States, nearly $500-B worth of trades went through stock markets Monday, 1 of the busiest days since March when coronavirus lockdown fears shook the financial markets. Europe saw $120-B traded, according to Refinitiv data.
Value stocks, typically companies that are more sensitive to economic cycles, marked their best 1-day performance Vs their growth-focused peers ever in the United States after Monday’s news of an effective vaccine against the coronavirus.
A similar trend was marked in the bond and currency markets where volumes matched the chaos trading seen during the depths of the market mayhem in March and 2X that of April when the coronavirus chaos hammered its way into markets.
Total turnover for the 33 currency pairs on CLS, a major settler of trades in the currency markets, totalled $627-B Monday.
Bond market turnover also spiked.
About 170,000 contracts changed hands on the popular front-month German bund futures contracts, 1.5X this year’s average, according to Refinitiv data.
Total turnover on German government bonds Monday totalled nearly $10.63-B, more than the average since the start of October, according to data from Marketaxess.
Turnover was about 3X the 30-day average daily volumes in cash and very active in the futures space.
Tuesday, the benchmark US stock market indexes finished at: DJIA +262.95 at 29420.86, NAS Comp -159.93 to 11553.78, S&P 500 -4.97 to 3545.67
Volume: Trade on the NYSE came in at 1.2-B/shares exchanged.
HeffX-LTN’s overall technical analysis for the US major stock market indexes is Bullish with a Very Bullish bias in here.
- NAS Comp +28.8% YTD
- S&P 500 +9.7% YTD
- DJIA +3.1% YTD
- Russell 2000 +4.1% YTD
Looking Ahead: Investors will receive the weekly MBA mortgage Applications Index Wednesday.
Have a healthy day, Keep the Faith!