In trading yesterday, the market stuck with the optimism from the Pfizer news here. US stocks saw some pushing and pulling but the S&P 500 closed just shy of record highs in the end. Meanwhile, Treasury yields kept the rebound with 10-year yields now up above 1.50%.
The overall mood today is slightly more tepid though. US futures are mildly softer while major currencies are showing very little appetite. On the latter, narrow ranges are still prevailing for the most part currently.
As much as Pfizer's finding is encouraging, best be reminded that it relates to a preliminary study from lab tests. The firm was quick to clarify that there will be more details to follow in the weeks ahead.
Keeping that in mind, there might be room for more volatility spurts in the meantime. Not least with some food for thought here, at least for equities.
Unless there are more virus headlines to deal with, expect the market to slowly settle down and turn the tune to focus on upcoming key central bank meetings next week. The Fed, SNB, BOE and ECB are all on the agenda.
0700 GMT - Germany October trade balance
Overall trade conditions are still slowly improving as a trend alongside the economic recovery. That should still be the case in teh months ahead through to year-end despite the many challenges.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
