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- Concerns about a global supply crisis and stubbornly rising inflation put investors on edge, as US equity-index futures fell and commodities rose.
- When the underlying index reported its largest weekly loss since February, futures on the S&P 500 index slid 0.4%. Iron ore and aluminum prices rose, while oil prices recovered ahead of an opec+ meeting on output objectives. After Merck's news of a successful COVID-19 medication, Moderna fell in premarket trading as traders sold vaccination stocks.
- As the post-pandemic economy drags due to supply bottlenecks in everything from semiconductors to coffee, global markets have taken a risk-off stance. Concerns that rising inflation would endure longer than policymakers estimate have grown as a result of a developing energy shortage. At a time when investors are expecting the Federal Reserve to begin tapering as soon as next month, the dangers are rising.
- Before the beginning of winter, Europe's energy crisis worsened, with electricity and gas costs skyrocketing. The November German electricity contract reached a new high of almost €200 per megawatt-hour. Natural-gas futures have also continued to rise.
- On Monday, oil recovered some of its losses on speculation that OPEC+ members may consider raising output more than expected. Before an alliance meeting, WTI soared above $76 per barrel.
- Treasury yields bear steepened, with the 10-Year rate rising three basis points and the 2-Year yield remaining unchanged. After two days of losses, the dollar remained stable.
- Moderna fell 2.7% early in New York trading, while Biontech SE fell 2%. Merck announced that their trial tablet reduces the risk of COVID-19-related hospitalization and mortality by half. The revelation was viewed by some traders as a watershed moment in the worldwide fight against COVID-19. Merck increased by 3.1%.
- Tesla rose 2.9% in early trade after reporting record third-quarter deliveries that exceeded expectations.
- WM Morrison Supermarkets fell 3.8% in Europe after CD&R emerged as the top bidder for the British retailer, while analysts claimed the auction's offer terms were underwhelming.
