Stock Market Analysis Today: Market sentiment remains positive on potential vaccine approval this week
European equity markets are slightly under pressure this morning, with the German index down 0.70 on the day.
The stock market has lost some of its recent momentum and investors are patiently waiting for the next big catalyst to push markets to new record highs. Trading volumes should pick up today, as US traders return from the long weekend.
Market sentiment remains positive overall, primarily driven by vaccine hopes.
The UK might approve the BioNTech–Pfizer vaccine as early as this week. This is welcome news for investors who are eagerly anticipating further details on the approval and distribution process and is fuelling hopes that things could be moving back to some kind of normality within the coming months.
Meanwhile, oil prices are likely to stay volatile in the short-term. OPEC+ failed to agree on whether to delay its planned oil output increase.
Should the organization fail to agree a delayed output hike, the recent recovery rally could quickly come under threat with WTI moving back towards the psychologically important $40 level.