Nomura...Santa Rally Ahead!30 Nov 2020 16:40
Time To Welcome The Santa Rally? (1020 Est/1520 Gmt)
With the Thanksgiving holiday weekend over, we can unofficially say the global equity market is moving into year-end, Santa-Rally mode, suggests Nomura.
"On average, markets tend to firm up over a span stretching from Thanksgiving through around Christmas, in a phenomenon described as a 'Santa Claus rally'," analysts at the Japanese bank write.
Amid a global pandemic, 2020 hasn't been a typical year for markets. But even if equities aren't exactly rallying across Europe or the U.S. today, there are signs that a bullish sentiment will prevail this year too as we head towards Christmas, Nomura adds.
"From a technical angle, rallies in the S&P 500 tend to ratchet up a notch after the VIX gets stably established below 20," says Nomura, citing the VIX brief dip below 20 last week.