In the early hours of the 19th, Beijing time, U.S. stocks closed higher on Monday, and the Dow rose more than 900 points. The news of the positive results of the Moderna coronavirus vaccine trial gave the market a sense of optimism. Trump continues to push for a reboot. The Fed has pledged to do more to support the economy. Europe’s announcement that it would lift travel restrictions on the Schengen area and agree to set up a 500 billion euro recovery fund has reinforced expectations of a de-sealed development in advanced economies.
The Dow closed up 911.95 points, or 3.85 percent, at 24,597.37, the Nasdaq gained 220.27 points, or 2.44 percent, to 9,234.83 and the Standard and Poor’s 500 index gained 90.21 points, or 3.15 percent, to 2,953.91.
The Dow rose more than 1,000 points to 24,708.54 in late trading. Anti-epidemic concept, aviation sector rose the most. Dow Chemical, Boeing Co., Disney, Exxon Mobil corp., American Express and others rose sharply.
So far this year, the Nasdaq is up more than 2.9 per cent, while the Dow and the Standard and Poor’s 500 index have narrowed to 13.8 per cent and 8.6 per cent.
Progress in Moderna vaccine development
U.S. vaccine concept shares jumped about 20 percent on Monday. The company said the vaccine, MRNA-1273, used to fight coronaviruses, is safe and well-tolerated;
According to a small sample of data from the first human trial, the experimental vaccine from Moderna shows promising early signs that it can produce an immune system response that helps the body fight the coronavirus.
Moderna said in a statement Monday that the main purpose of the study was to observe the safety of the vaccine, with no major warning signs in small Phase I trials. The trial was conducted in conjunction with the U.S. government, and Moderna plans to continue to advance the broader trial.
The researchers also examined blood samples from the subjects and whether the vaccine helped them produce antibodies that could fight the virus. The researchers found that at the two lower dose levels used in the study, the antibody levels found after the second consolidation injection were equal to or exceeded the antibody levels of patients recovering from the infection.
“It’s a very good signal that we’ve produced antibodies that can stop the virus from replicating,” Moderna CEO St?phane Bancel said in an interview. The numbers, he said, were “too good to be better.”
Bancel says the safety seems to be good and the response is typical of the vaccine response. These reaction symptoms include pain and redness at the injection site, as well as temporary fever or chills that quickly self-disappear, he said.
Bancel said it felt the need to release interim data on the trial because of the significance of the matter.
The second phase of the trial is expected to begin soon, and Moderna said in a statement that the final phase of the trial will begin in July.
In addition, Gilead Sciences’ anti-coronavirus drug Redcivir is likely to be granted a conditional listing in the European Union in the coming days.
U.S. and Europe restart their economies
While vaccine research is stepping up, U.S. states and european countries are relaunching their economies.
U.S. President Donald Trump said Monday: “Let’s restart our country!” The Chairman of the White House Council of Economic Advisers, John Hassett, said the Trump administration stands ready to take more action to spend on the virus if necessary, CNBC reported.
As of 20:10 BST on May 18, the total number of confirmed cases of new coronary pneumonia in the United States was 1.4867 million, with a cumulative total of 859,000 deaths, according to the U.S. Johns Hopkins University outbreak statistics.
It is estimated that the rate of transmission of new coronary outbreaks in the United States is declining, the rate of new cases in Europe and Asia is declining, and there is “little sign of a large-scale spread of the virus again”. In addition, economic data and credit card spending from China are improving.
Massachusetts Gov. Baker announced a plan to restart the economy On Monday. County districts in the San Francisco Bay Area will open manufacturing and retailing.
Fiat Chrysler announced that 15,100 workers at its u.S. and Canadian plants were back at work.
At the same time, many countries around the world have begun or have discussed a phased restart of the economy. European stocks surged on Monday as France, Italy, Spain, Belgium and Greece all announced an end to the short-spending ban, which no doubt fueled risk sentiment.
Fed pledges more to support economy Powell forecasts recovery in second half
Optimism about the rapid economic recovery, and the effectiveness of a coronavirus drug, as U.S. states and cities gradually return to public life, have helped offset the gloomy data.
The Fed’s unconventional measures to protect the economy from the impact reassured markets. Jerome Powell, chairman of the Federal Reserve, said the central bank could still do more to mitigate the economic impact of the coronavirus outbreak, adding that it expected a recovery in the second half of the year.
“Assuming there is no second wave of coronavirus outbreaks, then I think the U.S. economy will recover steadily in the second half of this year,” Powell said. In order for the economy to fully recover, people will have to be confident, which may have to wait for the vaccine to arrive. “
“We can do more,” Mr Powell said. We’ve done what we can. But what I’m saying is that we’re far from running out of ammunition. “
Atlanta Fed President John Bostik said in a speech Monday that the Fed will act again to help the economy if necessary.
Jasper Lawler, head of research at London-based Capital Group (LCG), said Federal Reserve Chairman Colin Powell said the U.S. economic recovery could continue into the end of 2021, but the Fed’s forecasts were generally too optimistic. Despite this, the warm weather encouraged countries to continue lifting the blockade. Sunny weather reduces the likelihood of a second flu outbreak.
Jasper Lawler also points out that the stock market looks upbeat as we start the new week. As the blockade progresses, investors continue to value companies as if the global economy has bottomed out.
Oak Tree Capital Marks says the Fed’s support will not be endless and credit markets will be in trouble. While the Fed has been successful in propping up corporate bond prices, he said, the support is temporary and pressure will sweep through credit markets as the Fed inevitably retreats.
Marks warned that credit markets would be in trouble when the Fed inevitably withdrew its support. The prospect of such a large-scale intervention has led to a surge in demand for both investment-grade and junk-grade bonds. The tool has been activated and it is not clear what will happen if the funds run out.
Marks expects the economy to slowly recover from the new crown epidemic and then stall, with a flood of debt defaults and bankruptcies expected in the coming months when corporate borrowers run out of money; and government and Fed rescue plans are unlikely to touch and protect some of the big, highly leveraged businesses and investment vehicles.
EU agrees to set up 500 billion euro recovery fund
Germany and France agreed on Monday to support a 500 billion euro ($543 billion) recovery fund backed by joint borrowingbys by EU member states to help the bloc weather its worst recession in modern times. The fund is supported by Merkel and Macron.
German Chancellor Angela Merkel and French President Emmanuel Macron have proposed allocating funds among member states, with repayments determined on the basis of the member states’ contribution to the EU budget. The leaders of the two EU’s biggest economies stood on the same front in a video conference amid deep divisions within the BLOC over the creation of a recovery fund.
Ms Merkel said the money would be within the EU budget framework and that the European Commission had the right to borrow from capital markets. Macron said the allocation of the financing would be based on the needs of member states and that the repayments would be linked to the proportion of countries’ contributions to the EU’s coffers.
“When Germany and France take the initiative, they will encourage the EU’s decision-making process, and we must take pan-European action to get through this crisis,” Merkel said after the video conference. “
European Central Bank President Christine Lagarde later said she welcomed the “ambitious and targeted” Proposals from France and Germany for the European Recovery Fund.
Spanish Prime Minister Sanchez also said France and Germany’s 500 billion euro EU recovery fund measures were the right direction.
U.S. vaccine concept shares rose sharply. The company says the vaccine MRNA-1273 for new coronary pneumonia is safe and well-tolerated;
The Tesla Fremont plant officially reopened today. At the same time, Tesla first updated the delivery schedule for the Model 3 and Model Y models in the United States, with a delivery time of 5-7 weeks for the Tesla Model 3 and 8 to 12 weeks for the Model Y.
Follow who learned to close down 7.3 percent. “We are short-siting and learning because we conclude that this is almost a complete fraud,” the report said. Hunshui said: “We suspect that at least 80 per cent of the income of who we study with is fraudulent, and perhaps even more than 90 per cent.” “
Boeing’s shares climbed. Ryanair is understood to be in talks with Boeing to order 10 MAX aircraft.
The Tesla Fremont plant officially reopened today.
TSMC received $700 million in orders from Huawei.
Buffett’s first-quarter position documents show that the total market value of positions fell 27.48 percent from the previous quarter, and Apple remains at the top of its portfolio, increasing its holdings of two financial firms and slashing Goldman’s 84 percent stake.
European countries announced the lifting of the ban, the economic restart activities on the agenda, coupled with France, Italy, Spain, Belgium, Greece and other countries announced today to end the short ban, Germany and France proposed the introduction of a 500 billion euro EU recovery fund, these news, especially the European stock market risk sentiment.
Europe’s main stock index opened higher on Monday, with the index closing up more than 4 percent. Europe’s pan-European index closed 4.12 per cent higher, Britain’s FTSE 100 closed 4.3 per cent higher, Germany’s DAX closed 5.8 per cent higher, France’s CAC closed 5.3 per cent higher and Spain’s IBEX closed 4.8 per cent higher.
Gold futures closed lower on Monday. A coronavirus vaccine trial initially achieved positive results, driving u.S. stocks to surge, reducing the risk-averse demand for gold.
Jim Wyckoff, senior analyst at Kitco.com, said: “Gold futures are lower following the news of the initial positive results of Moderna’s coronavirus vaccine trial. “
Biotech company Moderna (MRNA) has announced that its experimental messenger RIRR (mRNA) coronavirus vaccine is working positively in phase 1 clinical trials.
Wyckoff noted that the biotech company’s surge, driven by the news, “shows that the market’s appetite for venture capital is rife, which is often against gold prices.” “
Gold futures for June delivery fell $21.90, or nearly 1.3 percent, to $1,734.40 an ounce on the New York Mercantile Exchange, having risen as high as $1,775.80, close to its 2012 record high.
Gold futures rose 2.5 per cent in June last week.
Crude oil futures closed higher on Monday. Production cuts to balance supply and demand, and progress in vaccine research and development have made the market optimistic about a recovery in future demand, pushing oil prices to its highest close in more than two months.
Phil Flynn, senior market analyst at Price Futures Group, wrote in a research note on Monday: “The imminent release of reins in demand, stimulus measures and historic production cuts are driving optimism about the economy and boosting real oil demand.” “
West Texas Intermediate (WTI) for June delivery rose $2.39, or 8.1 percent, to $31.82 a barrel on the New York Mercantile Exchange. Based on recent monthly contracts, June WTI futures closed at their highest close since March 11, according to Dow Jones market data.
The June WTI contract expires when it closes on Tuesday. Investors are aware of the potential volatility of crude oil prices after the May contract entered the negative zone on April 20.
The July WTI contract is about to become the most actively traded contract. The contract closed up $2.13, or 7.2 percent, at $31.65 a barrel on Monday.
Brent crude for July delivery rose $2.31, or 7.1 percent, to close at $34.81 a barrel on the London-based Intercontinental Exchange.