Nearly $2 trillion traded on COVID-19 vaccine news

In this news, we discuss the Nearly $2 trillion traded on COVID-19 vaccine news.

LONDON (Reuters) – First data analyzed by Reuters, news of a breakthrough in the race to find a COVID-19 vaccine has sparked one of the most difficult days of negotiations since the height of the crisis pandemic, according to the first data analyzed by Reuters, with nearly $ 2 trillion changing hands on Monday.

Traders took hold of riskier equity, currency and bond markets after Pfizer Inc PFE.N released positive data on its vaccine trial, while shying away from safe-haven stocks such as tech stocks, the yen Japanese JPY = and the highest rated bonds.

“Volumes (are) also booming as programs and baskets get to work either to correct portfolio balances or to respond to margin calls,” said Mark Taylor, salesperson at Mirabaud Securities, noting a jump in volumes in the airline and banking sectors.

In the United States, nearly $ 500 billion in transactions were carried out on the stock markets on Monday, one of the busiest days since March, when coronavirus foreclosure fears rocked financial markets. Europe has seen $ 120 billion traded, according to data from Refinitiv.

Value stocks, typically companies more sensitive to economic cycles, posted their best single-day performance against their growth-focused peers in the United States after Monday’s announcement of an effective coronavirus vaccine.

A similar trend was noticed in bond and money markets, where volumes matched panic trading seen deep in market chaos in March and double that in April when the coronavirus pandemic crashed into the steps.

Total revenue for the 33 currency pairs on CLS, one of the major settlers for transactions in the currency markets, totaled $ 627 billion on Monday. Average daily revenue was $ 707 billion in March and $ 380 billion in April.

The bond market turnover also jumped. Almost 170,000 contracts have changed hands on popular German Bund futures, according to Refinitiv data , or 1.5 times the average for this year.

Total German government bond sales amounted to nearly 9 billion euros ($ 10.63 billion) on Monday, more than the average since early October, according to data from Marketaxess, a important trading platform.

Reporting by Thyagaraju Adinarayan and Saikat Chatterjee; Edited by and Jonathan Oatis

Original © Thomson Reuters

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