News & Analysis

Overnight on Wall Street: Wednesday 15 July 2020

July 15, 2020

By Deepta Bolaky
@DeeptaGOMarkets

Equity Markets

Global stocks were mixed on Tuesday as risk sentiment remains fragile. In the US session, investors took note of any positive progress towards a potential vaccine. Moderna Inc announced the publication of an interim analysis of the open-label Phase 1 study of mRNA-1273:

“Results from participants in the initial dose cohorts who received both vaccinations and were evaluated at pre-specified timepoints reaffirm the positive interim data assessment announced on May 18th and show mRNA-1273 induced rapid and strong immune responses against SARS-CoV-2.”


Source: Bloomberg

Major US equity indices rose higher on the news that Moderna’s COVID-19 vaccine has produced antibodies in an initial safety trial:

  • Dow Jones Industrial Average added 557 points or 2.1% to 26,643.
  • S&P 500 rose by 42 points or 1.3% to 3,198.
  • Nasdaq Composite added 98 points or 0.9% to 10,489.

On the earnings calendar, major banks like JP Morgan Chase, Citigroup and Wells Fargo reported their quarterly updates before the bell on Tuesday. JP Morgan was the best performer out of the three lifted by record profit for the second quarter.

  • JP Morgan’s share price finished the day by 0.6% higher at $98.21
  • Citigroup’s share price ended lower by nearly 4% to $50.15
  • Wells Fargo’s share price fell by a whopping 5% to $24.25.

Currency Markets

In the FX space, major currencies were mostly stronger against the US dollar. The greenback started on a stronger note but failed to keep the momentum throughout most of the day.


Source: Bloomberg Terminal

The GBPUSD ended the day relatively flat. On the economic front, while there is an improvement in the manufacturing section, monthly GDP came below expectations at only 1.8% compared to the forecasted 5%.

GBPUSD (Daily Chart)


Source: GO MT4

The Euro outperformed despite dismal Zew Surveys. The EURUSD pair reached a high of 1.14 on Tuesday.

EURUSD (Daily Chart)


Source: GO MT4

Commodities

Crude oil prices remained within familiar levels despite the rise in coronavirus cases due to the progress being made towards a potential COVID-19 vaccine. We expect traders to keep monitoring weekly and monthly reports for fresh trading impulse. The API report was also bullish. The weekly crude oil stock dipped from the previous 2M to -8.322M in July 10. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading around $40.43 and $42.98, respectively.

Gold

Amid a risk-on and off sentiment, the precious metal has managed to reclaim the $1,800 mark and is currently trading at $1,807.


Source: GO MT4

By Deepta Bolaky
 @DeeptaGOMarkets

Key upcoming events

  • Current Account (Japan)
  • Unemployment Rate (Switzerland)
  • European Commission releases Economic Growth Forecasts (Eurozone)
Thursday, 16 July 2020 
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
000.0980.113000
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
0000001.782


Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs. Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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