International Airlines Share News (IAG)

* Dow, S&P 500 trade at record highs
* Pfizer says its COVID-19 cure is effective
* Investors also cheer Biden victory
* Dollar edges up; gold slides, NYMEX crude up
* U.S. 10-Yr T-Note yield ~0.93%

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WHAT A DAY: IS THAT A ROTATION? (0930 EST/1430 GMT)
Investors were taking the view that only a vaccine could
cause a market rotation in Europe.
It is too soon to call it a rotation but clearly today was a
day of huge swings in the European stock markets after
drugmakers Pfizer and BioNTech said they've made strong progress
in their COVID-19 vaccine. The news came while some investors
were already cheering Joe Biden's presidential victory as it
raised hopes for a better trade environment.
Here are some milestones:
- European banks are on track for their best day since 2010,
up a whopping 11.4%
- The travel and leisure sector is having its best day since
April, last up 7%, while British Airways owner IAG is
having its best day since listing in 2011.
On the other hand, some lockdown winners are facing a
selloff:
-Ocado is on track for its worst day ever, down
15%; and Logitech shares slide almost 10%, in its worst
day in two years.
"Investors will recognize that they've been overly exuberant
or overly pessimistic for the last six months," says Nikesh
Patel, head of investment strategy at Kempen Capital Management
in London.
Karen Ward, chief market strategist EMEA at J.P. Morgan
Asset Management says “news on the efficacy of a Covid-19
vaccine is an important piece of the puzzle needed for the
global economy and markets to put the COVID-19 recession behind
it. But hurdles still remain".
She says "we need to find out more about production
capabilities, rollout and take-up. But for now this is shifting
the winners and losers sectoral narrative that was created by
COVID-19 and leading to a revival in value sectors such as
energy and financials".
Even if now governments have more visibility on the future
and can start planning ahead to when economies can properly
start to reopen from lockdowns, let's not get ahead of
ourselves, Patel also says.
"This is not a quick process, so even if you have a vaccine
you still have a substantial period of time to actually deploy
the vaccine around the world, not just in the U.S. and not just
in Europe, but around the world if you really want to get a grip
of the virus," he adds.

(Joice Alves and Tom Arnold)
*****

U.S. STOCK FUTURES PUMP UP ON VACCINE NEWS (0855 EST/1355
GMT)
U.S. stock futures are jumping on Monday as news of the
first successful late stage COVID-19 vaccine trial stirred hopes
of the economy emerging from a year of pandemic-driven crisis.

Drugmaker Pfizer and German partner BioNTech SE said
their experimental COVID-19 vaccine was more than 90% effective.

That said, with this, there are cross currents under the
market's surface. While S&P 500 and Dow Jones
e-minis are suggesting the S&P 500 and Dow Jones
Industrial Average are poised to pop around 4%-6% at the
open, Nasdaq futures are implying that the Nasdaq 100
is likely to rally less than 1%. This as stay-at-home
tech plays may unwind recent gains, while re-opening plays look
to surge.
For example, stocks such as Amazon.com, and Netflix
are trading down. Zoom Video is off more than
13%. This as the Global Jets ETF is climbing more than
20%. Thus, value looks set to outperform
growth. Small caps are also poised to outperform.
In any event, with the implied gains, the SPX and DJI both
appear poised to hit new record highs above 3,588.11 and
29,568.57 in early trade.
Meanwhile, spot gold is down sharply, NYMEX crude
futures are up strongly, and the U.S. 10-Year Treasury
Yield is back over 0.90%.
Here is your U.S. premarket snapshot:




(Terence Gabriel)
*****


FOR MONDAY'S LIVE MARKETS' POST PRIOR TO 0855 EST/1355 GMT
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)