Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

It's the euro's time now — at least that's how investors have been positioning recently.

What's happening: Speculators have raised their bets to the highest in nine years that the dollar will fall and increased bullish bets that the euro will rise to the highest level on record, Reuters reported citing data from the CFTC.

Driving the news: More money is flowing into the euro and euro-backed assets, including European stocks and bonds, as eurozone countries are seen bouncing back thanks to an $882 billion relief package passed by eurozone leaders and falling COVID-19 infection rates while the U.S. continues to struggle.

The big picture: “This is not a matter of growth this year or next year or predictions about the cycle — it’s really something more structural,” Nicolas Véron, a senior fellow at the Peterson Institute for International Economics, told Bloomberg.

  • “The budget deal changes the way financial markets look at the eurozone in a significant way."

By the numbers: The S&P 500 has outperformed the pan-European Stoxx 600 significantly, returning 3.2% year to date versus a 6.5% decline for the Stoxx, and 206% over the last 10 years vs the Stoxx's 33% gain, per FactSet.

  • The ZEW survey of economic sentiment in Germany, the eurozone's largest economy, rose to 71.5 from 59.3 the previous month. That was well above a forecast for 58.0 in a Reuters poll of economists, and the best reading since 2003, according to currency analysts.

The state of play: Analysts at the BlackRock Investment Institute announced they were raising their holdings of European equities to overweight, citing "the region’s robust public health infrastructure and a galvanized policy response."

  • "The different restart dynamics in the U.S. and Europe have also pressured the dollar, underscoring our preference for European equities and caution on U.S. stocks," they note.

Yes, but: The euro's 11% jump against the dollar since May has some in the currency market urging caution, as the last time investors packed into the euro like this in 2018 the market reversed and the dollar took flight against the continental currency.

  • Tuesday's market action may have been a preview as the greenback rose against most currencies. That was largely due to a reversal-of-risk appetite after Senate Majority Leader Mitch McConnell said negotiations in Congress on the next U.S. stimulus package had stalled.

The bottom line: Even though the U.S. is creating much of the global turbulence with rising trade tensions and an impasse on stimulus talks, the dollar likely would strengthen from safe-haven flows if risk appetite dries up again.

Go deeper

Updated Nov 9, 2020 - Economy & Business

Stock market rises after Pfizer coronavirus vaccine news

A face mask hanging on the fence of the New York Stock Exchange. Photo: Lev Radin/Pacific Press/LightRocket via Getty Images

The Dow closed up 2.9%, or 835 points, after Pfizer announced promising, though early, findings about the effectiveness of its coronavirus vaccine. The S&P 500 finished up 1.2%.

The state of play: The vaccine progress is fueling market optimism about a possible return to normal, as the coronavirus pandemic and social-distancing restrictions have held back the U.S. economy.

44 mins ago - Technology

Facebook: Metaverse won't "move fast and break things"

Illustration: Aïda Amer/Axios

Facebook on Monday said it will invest $50 million over two years in global research and program partners to ensure its metaverse products "are developed responsibly."

Why it matters: "It's almost the opposite of that now long-abandoned slogan of 'move fast and break things,'" Facebook's VP of global affairs Nick Clegg told Axios in an interview at The Atlantic Festival Monday.

Ina Fried, author of Login
54 mins ago - Technology

Facebook presses "pause" on Instagram Kids

Illustration: Annelise Capossela/Axios

Facebook's announcement Monday that it was "pausing development" on Instagram Kids did little to slow a wave of criticism of the project ahead of a Senate hearing Thursday.

Yes, but: There's an argument to be made for building kids' versions of popular apps, even if their adult versions are causing real-world harms.