It is a new week in the financial markets, and one to usher in a new era, it seems, as over the weekend Donald Trump was defeated in the US presidential election.
Nevertheless, Trump has refused to acknowledge the election results, something that he threatened to do long before November 3. Essentially, Trump has been saying for months that he cannot lose the election unless there is voter fraud. He is now following up on that statement by bringing lawsuits in contested states, but lawyers from both sides of the US political spectrum have stated that there is no evidence of fraud and the cases are not likely to achieve much.
In the meantime, today President-elect Joe Biden will be holding a press conference to reveal more about his plan to tackle the coronavirus pandemic, which he has made clear will be his first priority as President of the United States.
As of today, the US is the first country to have over 10 million coronavirus cases. For several days in a row now the tally has been increasing by more than 100,000 new infections per day. The US also has the highest number of Covid-19 deaths - around 243,000.
The coronavirus pandemic continues to trouble the rest of the world as well. Europe is still struggling with the second wave of outbreaks, despite many countries entering nation-wide lockdowns.
Experts in the United Kingdom predicted that it may take over five years to recover from the pandemic, especially considering the UK’s upcoming separation from the European Union.
Speaking of the coronavirus, today Pfizer announced its vaccine is 90% effective and is seeking approval by the FDA in the nearest future. This will most likely be the first vaccine to become available out of all of the research projects currently underway.
Market sentiment has sharpy improved due to the news of a vaccine. In addition, the prospect of Joe Biden as US president is also promoting risk appetite, as experts anticipate an end to Trump’s tariffs and improvements in international trade.
Of special interest right now are the stocks of aircraft manufacturers as we approach a deadline for the EU to decide whether to retaliate against some of Trump’s tariffs imposed due to the EU’s support for Airbus.
