The electric-car maker TESLA (NASDAQ: TSLA) shares climbed more than 11% in pre-market trading on Tuesday after the S&P global announced that Tesla will join the S&P 500 come Monday, Dec. 21. “Tesla will be one of the largest weight additions to the S&P 500 in the last decade, and consequently, will generate one of the largest funding trades in S&P 500 history,” S&P DJI said in a statement.
Asian markets ended higher on Tuesday supported by positive vaccine news. On Wall Street, The S&P 500 rose 1.2%, while the Nasdaq Composite rose 0.8%. On the earnings front, Walmart (WMT) and Home Depot (HD) report last quarter financial results early Tuesday.
Crude oil prices trading steady as the news on the vaccine fuelled the hopes of the global oil demand recovery outlook. Meanwhile, today the oil investors and traders waiting for the OPEC+ Meeting outcome.
In the currency market, the British pound trading higher ahead of the Bank of England Governor Andrew Bailey's speech. On the other hand, Britain's chief negotiator David Frost has told Prime Minister Boris Johnson to expect an agreement as soon as early next week.
Gold price rebounded from the previous session losses. On Monday, the yellow metal slipped to fresh weekly low following more upbeat news on the coronavirus vaccine.
On the data front, the Reserve Bank of Australia released the last meeting minutes. The minutes showed the board members emphasizing that monetary and fiscal stimulus would be needed for a considerable time, pledging not to raise interest rates for at least three more years.
On Monday, the American biotechnology company Moderna (NASDAQ: MRNA) said early results showed its candidate was 94.5 per cent effective. "This is a pivotal moment in the development of our COVID-19 vaccine candidate” Stephane Bancel, CEO of Moderna said. Moderna shares closed more than 9% higher on Monday.
Moving ahead today, the important events to watch:
US – Retail sales: GMT – 13.30
UK – BoE’s Governor Bailey Speech: GMT – 14.00
US –Industrial production: GMT – 14.15
Worldwide, more than 54 million people have been confirmed infected and more than 1.3 million have died, according to Johns Hopkins University. The cases of the coronavirus in the United States have surpassed 11.5 million with more than 252,000 deaths.
EUR/USD: The currency pair trading steady above 1.1850 on Tuesday. Overall, the momentum remained bullish throughout the European session.
The important levels to watch for today: Support- 1.1810 and 1.1780 Resistance- 1.1890 and 1.1930.
GOLD: The precious metal trading sideways and hovers near the $1890 level ahead of the US retail sales data.
The important levels to watch for today: Support- 1884 and 1874 Resistance- 1892 and 1900.
Quote of the day: The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. cutting losses. If you can follow these three rules, you may have a chance – Ed Seykota.