Stocks traded higher, from Tokyo shares to US futures contracts, buoyed by rising risk appetite from investors at the beginning of the week. While last week’s vaccine announcement renewed bullish sentiment on most stock markets, another boost has been given over the weekend with the signing of the Asian trade deal on Sunday. Of course, investors welcomed the news as this trade agreement will involve some of the world’s biggest economies and most densely populated areas in the globe, but that is not all. Investors were also glad to see President-Elect Joe Biden’s adviser oppose a national US lockdown, despite surging virus cases. This announcement has been well received by most traders as it allows them to keep their eyes on the reopening of economies and, more generally, the end of the crisis. This bullish trading stance is likely to remain for a while yet as investors welcome reassuring macro data from China, Europe, and the US.
However, short-term price action sparked by rising volatility may still occur in Europe as Brexit talks get more fraught as we step ever closer to the latest deadline.
