Asian stocks and U.S futures rallied higher on Monday morning. The upsurge is a result of renewed hopes for a COVID-19 vaccine, after leading drug maker AstraZeneca resumed its phase-3 trials.
However, investors still remain wary, as mark indicators showed institutional investors adjusting their portfolios ahead of a big week of central bank meetings in the United States, Japan, and the United Kingdom.
At the time of this report, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7%, poised for its second straight trading session of gains.
Australian shares also rallied higher by 0.6%, while Japan’s Nikkei 225 Index gained 0.7%. Chinese shares started firm with the blue-chip index (CSI300) rising 0.6%.
U.S. stock futures, the S&P 500 futures, gained more than 1%, as global traders increased their long bets on the prevailing macro, after AstraZeneca disclosed over the weekend, that it had resumed the clinical trials of its COVID-19 vaccine, one of the most advanced and credible developments, after getting the green light from health regulators
A vaccine has long been awaited to help pull the world out of a COVID-19 induced lockdown.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke on why it might be too early for investors to begin partying, as prevailing macros show that uncertainty remains.
“Investors face many uncertainties moving into the Northern Hemisphere Autumn, most notably on the US elections and the global pandemic path.
“Unquestionably the virus story is the dominant macro event, especially for equities, and is more likely to be dominated by optimism surrounding a vaccine. Investors will be keeping their eyes on the vaccine price.”