- Sec. Raab called on the European Union to recognize that the restoration of control over British waters is an issue of British sovereignty.
- Dow futures fell nearly 1%
- Oil prices rose with the stock market, as the market expected that once the vaccine was launched, fuel demand would rebound.
British Foreign Secretary Dominic Raab said on Sunday that the Brexit negotiators of the United Kingdom and the European Union showed “pragmatism” and “sincerity,” and “a deal is about to be reached.” In an interview with Sky News, Secretary Raab said that the biggest unresolved issue is fishing rights.
He called on the European Union to recognize that the restoration of control over British waters is an issue of British sovereignty. He said:
“I do think we’re in a reasonable position – there’s a deal to be done. If you look really at what the outstanding issues are, of course the level playing field, but it feels like there is progress towards greater respect for what the UK position was. On fishing there’s a point of principle: as we leave the EU we’re going to be an independent coastal state and we’ve got to be able to control our waters.”
Dow Futures Fall Nearly 1%
The global stock market is expected to record its largest monthly increase in the past 30 years. Investors can use the following positives to explain it reasonably:
- Vaccination has been put on the agenda
- The UK is expected to approve two highly-effective vaccines in early December
- Financial conditions such as credit spreads and interest rates are more relaxed than ever
On the other hand, with the second outbreak of the autumn and winter epidemic, the number of people infected with the coronavirus continues to rise. Many developed countries have reimposed lockdowns on the economy.
Whether the vaccine is really like a panacea, and other real factors, such as optimism in controlling the epidemic and economic recovery, the prospects do not seem worth mentioning.
Stock Market Soars, Price of Gold Falls
The Morgan Stanley Capital International Global Index has risen by 13.21% this month, among which the developed and emerging market indexes have risen by 13.46% and 11.53%, respectively, this month.
In particular, the developed market index has continued to rise, which has driven the global index to a record high. At the same time, global stock markets are expected to record the largest increase in history this month.
The rise in market sentiment led to a small sell-off of safe-haven assets. In the past week, the price of spot gold plummeted by 4.44% to $1,787 per ounce, the largest weekly decline since the fourth quarter, and the lowest level since July this year.
Oil prices rose with the stock market, as the market expected that once the vaccine was launched, fuel demand would rebound. The international benchmark brent crude oil rose 0.7% to slightly more than $48 per barrel. West Texas crude oil prices rose to more than $45 per barrel for the first time since March.
Bank of America analysts said that investors’ thirst for stocks has been reflected in capital flows. In November, $89 billion of funds poured into equity funds in three weeks, setting a record. The rise this month is all related to a key factor, and that is vaccines. In addition, the market concluded that the U.S. election has been settled, eliminating two fairly significant tail risks.