Pre-Market Review
COVID-19 Vaccine Boosts Markets

Posted by James Hughes -
Scope Markets

Markets gained on the open in the US and Europe. Asian stocks pushed higher during the last trading day of the month. The upside comes after US firm, Gilead Sciences, announced that a COVID-19 vaccine helped patients with the virus recover faster. Of course, any medication has a lot of hurdles to pass before it can become used in the mainstream. Yet the positive news helped markets higher.

There was also positive earnings data from Facebook and Microsoft after the closing bell yesterday that helped to lift sentiment. The result also shows that big tech firms continue to dominate Wall Street with now Nasdaq trading up.

The good news came after US GDP readings had shown the US economy contracting by 4.8% in Q1 of 2020. This represents the biggest fall in the economy since 2008. At the FOMC meeting, Fed chairman voiced his obvious concerns about the crisis and its impact on the economy. He called for policymakers to do more to limit the effect of coronavirus on the economy. He also pledged to keep rates low until both unemployment and inflation return to normal.

COVID-19 vaccine expected soon

Markets get their momentum from any headlines surrounding medication for the virus. Anything that will bring the moment of release from lockdown closer. Some countries are starting to ease isolation rules, but economic demand remains severely depressed. However, we must always be cautious when talking about drug trials as this is a minefield that has many pitfalls. Such is the nature of the drug and the need to help the recovery globally. Everyone is hoping to see the process expedited.

Thursday sees the ECB interest rate decision. Additionally, the US initial jobless claims will be out and it’s an important data over the last few weeks. The ECB is under immense pressure to increase its response to the crisis. Just previous week, ECB president Christine Lagarde, told EU leaders that they risked doing “too little too late”. She warned that the Eurozone economy could fall by around 15%.

So far EU leaders have fumbled their response to the crisis, with political infighting delaying any fiscal response. The ECB will look today to pile more pressure onto leaders. It may also have to act themself to introduce more in the way of economic stimulus. There have been a lot of comparisons between the Fed’s action in the US and that of the ECB. However, the ECB does not have the same firepower. European Central Bank needs to fight the crisis as it never recovered adequately from the previous crisis.

US initial jobless claims expect that a further 3.5m Americans lost their jobs last week. This could take the number to over 30m in the previous 6 weeks.

Trade-the-News-with-Scope-Markets
Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets

*The Company does not accept nor safekeep any cryptocurrency assets. The provision of such a service is not being directly provided by the Company, but through licensed third parties.

Awards

Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize

Email:
customerservice@scopemarkets.com

Tel:
+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the Financial Services Commission of Belize (“FSC”) under the license numbers 000274/325 and 000274/324. The registered address of Scope Markets Ltd is, 6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.