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Market mood S&P 500: Risk sentiment positive as vaccine' hopes boost equity markets [Video]

Listen to the latest market mood for the S&P500.

Risk sentiment is positive this morning as hopes of a November vaccine trial are boosting equity markets. The DAX, DOW, and Euro Stoxx futures are all higher on the day heading into the European open. The US Centre for Disease Control and Protection (CDC) asked US states to prepare for a possible COVID vaccine by early November. Furthermore, the National Institute for Health’s (NIH) Dr. Fauci said that based on COVID-19 vaccine trial enrolment rates there could be a vaccine ready by November or December.

This positive sentiment should keep the S&P500 futures markets supported in the session. However, COVID-19 infections in Europe are nearly back to March levels which could offset some of the near term optimism. Furthermore, the White House is set to clarify the extent of the WeChat and TikTok ban within weeks. Depending on the length and extent of the ban this could change the risk tone and invalidate the outlook.

Expect S&P500 future buyers on pullbacks.

Trade Risks

  • Rising European COVID-19 cases.

  • Any Escalation of US/China trade tensions.

  • Any negative news that changes the current positive risk tone.


Author

Giles Coghlan LLB, Lth, MA

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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