Risky sentiments amid pandemic records, OPEC report

12 nov 2020

In the first 10 days of November, 1 million (!) people were infected with COVID-19 in the United States. As a result, the number of patients with coronavirus in US hospitals has exceeded 60,000. It would seem that it’s time for investors to think about a possible second lockdown in the United States after Europe.

Instead, they are running out of safe haven assets (US Treasury yields are at their highest levels since spring). Equity markets are correspondingly storming historic highs. And if the last couple of days investors have tried to bypass the shares of high-tech companies, then yesterday it came to them.

Recall that after the news from Pfizer, investors decided that the world will soon return to normal, which means that preference should be given to value stocks (which are now relatively undervalued), rather than growth stocks (now significantly overvalued). As a result, at the start of the week, value companies around the world as a whole demonstrated the maximum growth in the entire history of observations relative to growth companies.

Russia, following Pfizer, announced a 90% + effectiveness of its vaccine. This statement looked somewhat ridiculous on the information that in the Altai Territory three doctors vaccinated with the Sputnik V vaccine contracted the coronavirus.

On the oil market, all attention was focused yesterday on the monthly OPEC report. The cartel has lowered its own forecast for oil demand in 2020 (by 300 thousand barrels per day - to 90.01 million bpd). In general, the rise in oil prices in the past couple of weeks is a reason for oil sales.

Today promises to be quite busy in terms of macroeconomic statistics. UK Q3 GDP, Eurozone Industrial Production in September and traditional weekly US jobless claims statistics, as well as official US oil stocks data.