Has Pfizer and BioNTech solved our economic woes?
The companies announced that they had developed a new coronavirus vaccine that has an effective rate of 90 percent. It requires two doses, and they will start manufacturing 1.3 billion doses next year. It’s all about the logistics and distribution.
The announcement triggered a huge rally on Monday, but the spike deflated toward the end of the session, and Tuesday’s gains are pretty modest.
That said, according to early data analyzed by Reuters, approximately $2 trillion had changed hands in global financial markets to kick off the trading week.
Investors’ risk appetite was ferocious as traders poured into equities, foreign exchange, and bond markets. Meanwhile, they ditched technology stocks, the Japanese yen, and top-rated bonds.
In the United States alone, $500 billion worth of trades were executed, and another $120 billion was traded in Europe.
Gold and silver prices were annihilated on Monday, but they have quickly recovered on Tuesday.
This is a crazy market, but it will remain trending upward thanks to an accommodative Federal Reserve and aggressive fiscal stimulus and relief spending.
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