Wednesday Market Minute
- Global stock rally on coronovirus vaccine progress, but US-China tensions escalate in Czech.
- Modern says the mRNA-1273 vaccine trial triggers the antibody response in all 45 participants, opening the door for a comprehensive study.
- President Donald Trump ended Hong Kong’s special status by inciting retaliation threats from China.
- US bank earnings on Wednesday came after JPMorgan and Citigroup expected stronger reports than on Tuesday.
- According to API data and the weakening US dollar, domestic crude oil stocks spiked after a larger fall than the 8.3 million barrels expected.
- US Equity Future suggests a strong opening on Wall Street following second-quarter earnings from United Street, Goldman Sachs and US Bancorp.
US equity futures extended gains on Wednesday, while the dollar fell to a one-month low against its global currency peers as investors progressed on an experimental coronavirus vaccine, keeping a close eye on the sudden escalating political tensions between Washington and Beijing. Reacted to.
Modern Inc. (mRNA) – Get Report Late Tuesday, its mRNA-1273 coronavirus vaccine candidate triggered antibody responses – with some mild side effects – in all of the 45 patients included in the initial, peer-reviewed study.
Another 30,000 volunteers will participate in a major trial of the candidate in the summer of this year, but the progress of Modern, which NIAID director Dr. Was outlined by Anthony Fauci, after a Pfizer data added to the virus’s market optimism (PFE) – Get Report Study and development in Gilead science earlier this week ‘ (Make gold) – Get Report the treatment.
However, the good news is that this was partially overshadowed by the fact that coronovirus cases in the US topped 3.4 million, with about 137,000 fatalities, outnumbered in states such as Florida, Texas and California The growth continues.
Investors were also taken aback by President Donald Trump’s decision last night to end the so-called special status provided to Hong Kong, a move that affects some 1,300 US companies in the defense business and has provoked a strong backlash from Beijing, Who then accused Washington of meditating in their cases.
Trump also took a swipe at China to deal with an outbreak of coronovirus, which originated in the central industrial city of Wuhan, commenting that some interpreted the Phase I trade deal between the two economies as being at risk is.
“Make no mistake. We hold China completely responsible for hiding the virus and leave it to the world. They could have stopped it, they should have stopped it,” Trump told reporters at the White House on Tuesday. . ” “This would have been very easy to do at source when this happened.”
Stocks are set to kick-off another busy earnings session on a positive note, however, following a strong-than-expected second quarter report from JP Morgan (JPM) – Get Report And citigroup (C) – Get Report Yesterday, the Dow Jones Industrial Average indicated contracts to gain an early lead of 395 points, and those associated with the S&P 500, which briefly indicated a positive gain of 35 points earlier this week.
Apple Inc. (AAPL) – Get Report The shares had another notable early market-mover, a 2.12% increase – and adding 60 points to the Dow – Europe’s second-highest court ruled in favor of the tech giant in a long battle over $ 15 billion in unpaid taxes.
The US Dollar Index, which tracks the greenback against a basket of six global currency peers, fell 0.4% in one-night trading to a one-month low of 95.867, thanks to the optimism of a near-term coronovirus vaccine Thanks to, and more signs, a positive result on a European rescue package at the EU summit in Brussels this weekend, which lifted the euro to a multi-week high of 1.1440.
European stocks also followed the currency higher, with the Stocks X600 benchmark gaining 1.75% in early trading in Frankfurt, while Britain’s FTSE 100 rewarded 1.7% in London, index heavyweight drugmakers GlaxoSmithKline (GSK) – Get Report And AstraZeneca (AZN) – Get Report
Oil prices were rising on Wednesday, following Tuesday’s data from the American Petroleum Institute, which saw a decline in domestic crude oil stocks by 8.3 million barrels, compared to an improvement in demand in the world’s second-largest energy market There is a big-expected drop.
The WTI contract for August delivery, the US benchmark, traded more than 60 cents near their Tuesday in New York and was changing hands to $ 40.89 per barrel in the initial European deal, while the Brent contract, the global benchmark, for August , Was seen 56 centimeters short at $ 43.46. Barrel.
Overnight China shares in Asia shed 1.6% in Shanghai amid rising Sino-American tensions – including President Trump’s personal decision for Britain to ban Huawei Technologies from its 5G infrastructure projects Taken credit – but those declines were offset by gains surrounding the sector, which helped lift the MSCI pre-Japan benchmark by 0.75% more in the last hour of trading.
Meanwhile, Japan’s Nikkei 225, a 1.6% jump in follow-up rally from Wall Street, is narrowing the session by just 23,000 points.