- Moderna (MRNA.US) COVID-19 vaccine is more than 94% effective
- US records 1 million new Covid-19 cases in a week
- Asia-Pacific countries signed world's biggest trade agreement
European indices finished session higher after Moderna said preliminary trial data showed its coronavirus vaccine was more than 94% effective and does not present any significant safety concerns. Also investors welcomed the news that fifteen countries from Asia-Pacific region including China, Australia, New Zealand, South Korea and Japan signed the Regional Comprehensive Economic Partnership trade deal on Sunday, which brings hopes for an improvement in global trade, which had been hit by U.S.-China tensions. Also, upbeat economic data for Chinese industrial production and Japan Q3 GDP lifted market sentiment. Meanwhile, negotiations between the UK and the EU resumed in Brussels, while the EU summit on November 19th is seen as the final deadline for a draft Brexit deal. However investors remain concerned as some countries in Europe have introduced additional restrictions due to the increase in COVID-19 cases. In Italy, Campania and Tuscany will be placed under the strictest lockdown measures from Sunday. Yesterday Germany economy minister Peter Altmaier said that country must live with “considerable restrictions” against the spread of Covid-19 for at least four to five months. Spain reported 21,371 new cases on Friday, up nearly 2,000 from Thursday and 308 deaths, marking the end of the deadliest week since April. British Prime Minister Boris Johnson is self-isolating after coming into contact with someone who tested positive for Covid-19. During today’s session DAX30 rose 0.5%, CAC40 added 1.7% and FTSE 100 finished 1.66% higher.
US stocks also jumped on vaccine news. Dow Jones gained 1.2% and is trading near its all-time high, S&P500 rose 1.0% and Nasdaq is trading 0.4% higher. Moderna is the second drug maker after Pfizer/BioNTech which announced promising vaccine candidate. Company also said, that its vaccine will stay stable at refrigerated temperatures for 30 days and can be stored for up to six months at negative 4 degrees Fahrenheit/-20°C. By comparison, Pfizer’s vaccine requires a storage temperature of minus 94 degrees Fahrenheit/ -70°C. Stocks that would benefit from the reopening of the economy are the top performers during today's session. United Airlines rose over 6.0%, and Carnival is trading more than 10.0% higher. Bank shares such as JPMorgan Chase and Wells Fargo rose over 2% each and Citigroup climbed nearly 4%. Moderna stock rose over 6.0% while BioNtech stock plunged 15%. Meanwhile the number of coronavirus cases in the United States crossed the 11-million mark of which 133,045 new infections were reported only yesterday. Over the last week, the country reported more than 1 million cases. The number of hospitalizations is also at a record high. Almost 70,000 patients are currently hospitalized due to the virus. Several states have decided to introduce additional restrictions. Michigan authorities introduced remote learning in high schools and colleges for a three-week period, closed movie theaters and casinos, halted exercise classes and stopped indoor dining at restaurants. Washington restricted indoor social gatherings from outside the home, and limited restaurant and bars to outdoor service capacity. On Wednesday Oregon will begin "social freeze" which will last two weeks and Utah enacted a statewide mask mandate, while Ohio is enacting stricter mask mandates for businesses.
US crude futures are trading almost 2.7% higher while the international benchmark Brent contract rose over 2.5% on vaccine news and on prospects that OPEC+ will hold current output curbs. Cartel will hold a ministerial committee meeting tomorrow which could recommend changes to production quotas when all the ministers meet at the end of the month. Elsewhere, gold futures rose nearly 0.25% around $ 1,892 / oz, while silver managed to erase early losses and is trading 0.4 higher% amid weaker US dollar.
USDCAD – buyers failed to break above the major resistance level at 1.3153 which is additionally strengthened by 20 SMA (blue line) and price pulled back. Should current sentiment prevails, then support at 1.2940 could be at risk. Source: xStation5
