Equity markets across the globe are surging. European and small-cap U.S. stocks are seeing gains of more than 5%.
Vaccine trial results causing massive market moves
Hopes of a successful vaccine from Pfizer Inc. and BioNTech SE and global economic recovery are pushing up prices of energy and airline equities. Gold, often seen as a safe haven, is having one of its worst days this year. The CBOE VIX index, which had fallen from a recent pre-election fear high of 40.28, is falling further on the vaccine news to 23.40.
Government bond yields in most countries have increased more than 10 basis points. However, Brazil, which has been hit hard by the COVID-19 pandemic, is seeing yields fall significantly.