The Wednesday Market Minute
- Global stocks rally on coronavirus vaccine progress, but rising U.S.-China tensions keep gains in check.
- Moderna says mRNA-1273 vaccine trial triggers antibody reaction in all 45 participants, opening door for a wider study.
- President Donald Trump ends Hong Kong’s special status, provoking threat of retaliation from China.
- U.S. bank earnings on tap Wednesday following stronger-than-expected reports from JPMorgan and Citigroup Tuesday.
- Apple wins a key European tax ruling on $15 billion in back taxes allegedly owed to the Republic of Ireland
- U.S. equity futures suggest a firmer open on Wall Street after stronger-than-expected second quarter earnings from UnitedHealth and Goldman Sachs.
U.S. equity futures extended gains Wednesday, while the dollar fell to a one-month low against its global currency peers, as investors reacted to progress on an experimental coronavirus vaccine while keeping a close eye on the suddenly rising political tensions between Washington and Beijing.
Moderna Inc. (MRNA) – Get Report said late Tuesday that its mRNA-1273 coronavirus vaccine candidate triggered antibody reactions — with some mild side-effects — in all of the 45 patients involved in an early, peer-reviewed study.
A further 30,000 volunteers will participate in a larger test of the candidate later this summer, but Moderna’s progress, which was hailed by NIAID director Dr. Anthony Fauci, added to market optimism linked to the virus following data from a Pfizer (PFE) – Get Report study earlier this week and developments in Gilead Sciences’ (GILD) – Get Report remdesivir treatment.
The good news, however, was partly shrouded by the fact that coronavirus cases in the U.S. have topped 3.4 million, with around 137,000 fatalities, with numbers continue to spike in states such as Florida, Texas and California.
Investors were also unsettled by President Donald Trump’s decision last night to end the so-called special status conferred on Hong Kong, a move that affects some 1,300 American companies doing business in the protectorate and provoked a strong reaction from Beijing, which again accused Washington of meddling in its affairs.
Trump also took a swipe at China’s handling of the coronavirus outbreak, which originated in the central industrial city of Wuhan, in remarks that some have interpreted as putting the phase 1 trade de