Markets Buoyant as Another Vaccine Candidate Reports Strong Results

Following promising updates from Moderna and Pfizer/BioNTech in recent weeks, equity markets are trading well, with core European indices higher across the board. Futures in the US are similarly higher, indicating a firmer open on Wall Street later today, with the e-mini S&P higher by over 20 points at pixel time.

GBP is the strongest performer in FX space, with reports over the weekend adding to hopes surrounding a potential Brexit deal being struck as soon as this week. GBP/USD sits at a multi-month high in response and just shy of the 1.34 handle. This narrows the gap with the September highs of 1.3482 which remain the medium-term target.

The greenback is the weakest currency in G10, with CHF and JPY also soft. AUD and NZD rise alongside global equity markets.

Focus turns to prelim November US PMI data and speeches from BoE's Bailey, Haldane & Tenreyro as well as Fed's Barkin, Daly & Evans. UK PM Johnson is expected to provide an update on post-lockdown life in the UK, with an announcement seen on a relaxation of restrictions over Christmas.