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Higher real interest rates thanks to positive covid-19 vaccine news caused gold to drop below key support at $1850 per oz to a new 4-month low.
MARKETS
News
• Trump administration officially begins transition to Biden: General Services Administration chief Emily Murphy on Monday told Joe Biden that the Trump administration is making federal resources available for his transition into office. Trump tweeted that he approved the move but he has still refused to explicitly concede the race to Biden;
• Joe Biden reveals top picks for national security team. Antony Blinken chosen as secretary of state as John Kerry lands senior climate role. Janet Yellen is Biden’s pick for Treasury Secretary;
• Asia-Pacific shares mostly rise amid vaccine hopes. Japan stocks pop by nearly 3%. Dow futures rise more than 200 points as Trump administration begins transition process;
• Electric Vehicles continue to be on fire: Tesla (TSLA) gained 6% as Wedbush sees 104% upside potential. Nikola (NKLA) and NIO ADR (NIO) more than 10% while Xpeng ADR (XPEV) surged more than 30%;
• "Battery" stocks exploded yesterday: Switchback Energy (SBE) gained 40.7%, Blink Charging (BLNK) surged by 57%, etc.
• U.S Energy stocks surged; SPDR Energy Trust ETF (XLE) gained more than 7%.
What Else?
• Israeli Prime Minister Benjamin Netanyahu secretly met Saudi Arabia’s crown prince in the kingdom on Sunday, according to three Saudi government advisers;
• US air travel rises during Thanksgiving. Airports have busiest weekend since March even as tally of coronavirus cases passes 12m;
• Goldman cuts fourth-quarter and first-quarter GDP forecasts, cites Covid resurgence;
• Global stocks are vulnerable to $300 billion of outflows by year-end, JPMorgan says.
Day Ahead
• Earnings: Medtronic PLC, Xiaomi, VMware Inc, Autodesk Inc, Dell Technologies, Analog Devices, LUKOIL Oil Company, Best Buy Co, Dollar Tree, Tiffany & Co;
• Macro: German & French Q3 Preliminary GDP (Q3), German Ifo Business Climate Index (November), U.S. S&P/CS Housing Price Index, U.S. Conference Board Consumer Confidence.
WRAP
Markets
Stocks rose on Monday after AstraZeneca and the University of Oxford said their coronavirus vaccine was up to 90% effective, becoming the third inoculation this month that was revealed to be effective in trial data. The Dow Jones closed 1.1% higher while the Nasdaq advanced 0.2%. The Dow hit its session high in the final hour of trading amid news that President-elect Joe Biden plans to nominate former Federal Reserve Chair Janet Yellen for Treasury secretary. The pan-European Stoxx 600 closed flat, with oil and gas stocks bouncing 3.2% to lead gains. Gold and Silver tumbled while Ethereum crossed the $600 mark intraday.
Macro
IHS Markit said their U.S. manufacturing and services purchasing managers’ indexes hit multiyear highs. The flash U.S. services index rose to 57.7, its highest level in more than five years. Meanwhile, UK Prime Minister Boris Johnson announced Monday the country’s national lockdown would end on Dec. 2 with certain conditions in place.