Weekly Market Insight

Latest Economic & Market Update 10th November 2020

10th November 2020

Good afternoon, it is November 10th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Global stocks soar on vaccine news.
  • NTMA plans for bond auction on Thursday.

Following an announcement from Pfizer and BioNTech that a vaccine had been found to be more than 90% effective, global stocks soared and treasuries tumbled. The S&P500 was up 3.84% at one point during the day however following comments from Senate Majority Leader Mitch McConnell that Congress should only pass a limited fiscal stimulus bill in 2020, stocks pared some of their gains and the S&P500 closed the day 1.17% higher. Travel stocks were major winners yesterday with companies such as Carnival Corps soaring over 39%. Stocks that benefit from stay at home suffered with Zoom Video Communications falling 17.4%. The Nasdaq fell -1.53% with Amazon and Netflix falling 5% & 8.6% respectively. The Stoxx Europe 600 Index closed 3.98% higher. Yields soared with the US 10 year yield climbing from 0.8185% to 0.9235% reaching the highest levels since March. The price of oil surged with the WTI climbing 8.48% to $40.29/barrel and crude oil climbing 7.48% to $42.40/barrel. (Source: Bloomberg).
The National Treasury Management Agency (NTMA) are planning on holding a bond auction on Thursday to raise between €1 billion to €1.25 billion of long term debt on Thursday. Irish government bonds are issued through the NTMA. To deal with the fallout of the pandemic and the cost to the exchequer, the NTMA set a funding target of €20-€24 billion in May. Only €10-€14 billion was originally planned to be raised for the year however the NTMA has already raised over €23 billion of debt this year. At an auction last month, an Irish seven year government bond sold with a yield of -0.42%, the lowest ever yield an Irish bond has sold at. This is a drastic difference to when 10 year Irish bonds saw yields rise to 14% during the height of the sovereign debt crisis. (Source: The Irish Times).

Best & Worst Performers of Large Cap US Stocks on Monday
Click image to enlarge

Global Market Update
(as at close of markets 09/11/2020)