Sentiment was upbeat on Friday, despite rising Covid cases in the US and Europe and associated restrictions. The S&P500 rose 1.4% to a fresh record high close, bond yields rose slightly, and the defensive US dollar fell slightly.

Sentiment sagged overnight, amid rising Covid cases, disappointing US inflation data, warnings from Fed Chair Powell, and further setbacks in US stimulus talks. The S&P500 is down 1.0%, and bond yields and risk sensitive currencies are lower.

Equity markets in Europe and the US remained upbeat, the S&P500 currently up 0.9%. However, the defensive US dollar also rose, while US bond markets were closed for national holiday. Rising Covid cases in the US and Europe attracted some attention.

Markets consolidated, following the previous day’s surge in risk appetite. The S&P500 is currently down 0.2%, with bond yields and currencies little changed. While yesterday’s vaccine news was promising, the ensuing commentary has highlighted manufacturing and distribution challenges.

Sentiment surged on some positive Covid vaccine news. All major asset classes responded, the Eurostoxx50 up 6.4% and the S&P500 up 3.2%. Bond yields and commodities also surged, while risk-sensitive currencies had more modest gains due to USD strength.

US equities stalled on Friday, the prospect of a Democrat Presidency but divided House seen as limiting fiscal stimulus. The monthly US jobs data beat expectations. The S&P500 closed unchanged, bond yields rose, and the US dollar fell.

US equities rose further amid continuing vote counting in the US election, the S&P500 up 2.2% and within 2% of an all-time high. Bond yields reversed higher, and the US dollar fell.

Market reactions to US election developments were mixed, with US equities rising overnight (S&P500 +3.0%) as Biden’s performance improved, but bond yields falling on the receding chances of large-scale fiscal stimulus. Risk sensitive currencies partially recovered.

Markets were quite upbeat overnight, perhaps in anticipation of a strong Democrat showing in the US election which is currently underway. The S&P500 is up 2.0%, bond yields are higher, and the defensive USD is lower.

US equity sentiment improved, the S&P500 currently up 0.5%. Currencies were mixed, though, and US bond yields fell slightly. The looming US election remained the focal point.