By Deepta Bolaky
Moderna Inc, the Massachusetts-based biotechnology firm which received the funding from the CEPI to accelerate the development of messenger RNA Vaccine against the novel coronavirus announced positive interim Phase 1 Data for its mRNA Vaccine:
The share price of the drugmaker rose by nearly 20% as Moderna team is moving as fast as safely as possible towards a vaccine.
Global stocks rallied in the European and US session on Monday and experienced their best days in weeks. The markets also took note of the Fed’s comments that the US economy is expected to recover steadily towards the second half of the year but the recovery could drag through 2021. “For the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine”, says Fed Chair Jerome Powell.
All major US equity benchmarks rose between 2%-4% while European bourses gained around 4%-5%.
In the FX space, the Moderna’s announcement sent the US dollar, Swiss franc and Japanese yen lower as investors exited safe-haven assets. Major currencies were stronger against the US dollar and the Antipodeans emerged as the best-performing currencies.
China’s pledge of $2 billion to help the global fight against COVID-19 and that any vaccine discovered by China would be made a “global public good” has contributed towards the overall optimism seen on Monday. As risk sentiment improves, the AUDUSD rose the most in seven weeks above the 0.65 level. As of writing, the pair is seen trading in a consolidation phase before the release of the RBA minutes later today.
Source: GO MT4
The overall optimism in the markets on Monday has helped the oil market to edge higher. A combination of production cuts, buoyant inventory reports, and the prospects of increasing demand is allowing crude oil prices to recover a semblance of normality.
As of writing, WTI Crude oil (Nymex) is currently trading 4.4% higher at $33.23 while Brent Crude (ICE) is trading at 34.81, up by 7.11%.
We expect oil traders to keep monitoring updates on the virus front and weekly reports to gauge demand and supply dynamics.
Risk appetite has sapped the demand for the precious metal. The positive development towards a vaccine has dampened the sentiment for safe-haven assets which caused the precious metal to retreat to $1,734,l. However, the pair has remained above the key psychological level of $1,700 due to geopolitical tensions and dismal economic reports.
Source: GO MT4
By Deepta Bolaky
|Wednesday, 20 May 2020
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