Global stocks and Wall Street ended higher in November. The S&P 500 climbed 10.8% for the month, its biggest monthly gain since April. While the Dow has added almost 13% so far, which would be the best month since January 1987. The energy stocks in the S&P 500 ended November with an above 25% gain supported by the strong rebound in the crude oil prices.
Wall Street recovered from the early session losses and closed higher on Monday lifted by positive vaccine news from Moderna. Moderna (NASDAQ: MRNA) shares extends its surge and closed 20% higher on Monday after the company said it applied an Emergency Use Authorization from the FDA for its COVID19 vaccine.
Crude oil prices trading unchanged on Tuesday as investors on doubts whether OPEC and other oil-exporting countries could agree in postpone its planned production increase in January.
In the currency market, the Asian currencies trading higher supported by better-than-expected China manufacturing data. On the other hand, the US dollar slightly rebounded from the two-year lows during the previous session ahead of Fed Chair Jerome Powell's two days of congressional testimony.
Gold prices slightly recovered from the early losses on Monday. Meanwhile, the precious metal closed in November below $1,800 for the first time since the end of June.
On the data front, US October pending sales declined 1.1%, a second consecutive decline and Chicago PMI came below expectations 58.2 in November compared to the prior month of 61.1 and the consensus estimate of 59.0.
RBA December meeting highlights
On Tuesday, during the Asian session, the Reserve Bank of Australia left its cash rate unchanged at a historic low of 0.1% during its December meeting. RBA Governor Philip Lowe said the bank is doing its best to revive the nation from its current COVID-19 recession.
"In Australia, the economic recovery is underway and recent data have generally been better than expected. This is good news, but the recovery is still expected to be uneven and drawn out and it remains dependent on significant policy support," RBA governor Lowe said.
Moving ahead today, the important events to watch:
EUROZONE – Consumer price index: GMT – 10.00
US – ISM manufacturing PMI: GMT – 15.00
As of Monday evening, more than 63.1 million cases of COVID-19 had been reported worldwide, with more than 40.3 million of those considered recovered, according to Johns Hopkins University.
EUR/USD: The currency pair hovers near the 1.1950 level on Tuesday after the pair failed to break above the psychological level 1.20 during the previous session.
The important levels to watch for today: Support- 1.1940 and 1.1910 Resistance- 1.20 and 1.2030.
GOLD: The yellow metal trading above $1785 on Tuesday after the metal found some support near the $1760 demand zone. Meanwhile, the overall momentum remains mixed.
The important levels to watch for today: Support- 1774 and 1762 Resistance- 1790 and 1800.
Quote of the day: I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful – Warren Buffet.