London Open: The Market No Longer Seems So "Ball And Chained" To The Grip Of COVID

COVID-19 continues to take its human toll, with a record daily increase in new cases globally and the US, amid fresh outbreaks and containment measures. However, the market no longer seems so "ball and chained." to the grip of the virus, but instead, investors' interest is keenly focused on news around vaccine development.
 
Hong Kong stock markets were visibly nervous, with HSI down more than 1% at one point in early trading, as the new wave of COVID-19 infections worsened over the weekend. But the market is bouncing back again, so judging by the HSI nonplussed reaction, traders appear pretty relaxed, knowingly bridged by an unwavering stimulus commitment until a vaccine is in hand.
 
On a more upbeat note, the fact that EU leaders are willing to come back for the fourth day—Monday afternoon European time—is to all appearances a good sign and a win for European Council President Charles Michel. It signals a willpower get something through, rather than resorting to another summit over the next couple of weeks.
 
For the most part, risk markets outside of China, which sees the national retail army of stock traders soaking up tech bargains, sentiment remains directionless, stuck in the summer doldrums this morning, provoking no meaningful action in Forex markets.
 
The main event was gathering EU leaders, but while the euro has rallied over the last month in anticipation of an agreement, the market is in wait-and-see mode, as negotiations ended in deadlock. Still, there is likely to be market patience about when that agreement may be secured.
 
There's no shift in the anchor for gold markets today. Still, investors continue to tread carefully head of vaccine trial reports due out this week, which could significantly influence the near term view as the long term uptrend is battling against short-term technicals.