Moderna vaccine trial boost US markets
Asia is seeing patchy price action today, with the Moderna vaccine trial results lifting US aftermarket futures and most exchanges across the region. Moderna announced positive results from its experimental Covid-19 from another small-scale human trial. More significantly this time, the results have been published in a peer-reviewed journal, meaning independent eyes have been cast over the results.
Dow Jones futures have climbed 0.80% this morning on the Moderna news after a strong showing overnight. The S&P 500 rose 1.35%, the Nasdaq 0.95% and the Dow Jones jumped 2.15% as Wall Street shrugged off dovish Federal Reserve recovery comments. The Nasdaq, seemingly invulnerable this year, has not reversed the very bearish technical price action of Monday though. Until it does, the equity rally of overnight and today should be approached with caution.
The Nikkei 225 has jumped 1.30% today, catching the vaccine wave and an unchanged Bank of Japan. The Kospi has risen 0.40% with Singapore rising 1.0%, boosted by potential trade travails going forward for Hong Kong.
All of the China indices are lower today after President Trump signed the Hong Kong Law and prompted removed the SAR’s special trading status. The United Kingdom overnight banned Huawei from its incoming 5G network. Combined, the news has dampened sentiment in China, with local traders anticipating more tit-for-tat trade retaliations from both sides. The Shanghai Composite is down 1.40%, with the CSI 300 and Hang Seng both lower by 0.50%.
Looking forward, European stock markets will likely open higher, boosted by vaccine hopes and the hoped-for European Union recovery package nearing an agreement.