Financial markets displayed a strong risk-on tone yesterday as participants sold bonds and US dollars and bought stocks. The greenback sold-off against the majority of its peers bar the Japanese yen, while European indices rose between 4% – 5%. Positive news from US biotech firm Moderna Therapeutics was one of the prime reasons for the significant rally.
The company revealed the news that all the 45 patients it tested created antibodies following their treatment. Even though it’s early days in the research phase, with Moderna even admitting if all went well the earliest possible date for a vaccine would be 2021, financial markets focused on the positives and recouped lost ground from the March sell-off.
The UK economy will be in focus this morning with the latest set of employment numbers on tap. The report was printed at the new temporary release time of 7 am. The number of individuals claiming benefit was higher than forecast, hitting 856,500 vs. 676,500.
Elsewhere, this morning sees German ZEW (business sentiment) released. The afternoon session has US building permits and housing starts scheduled which will be followed by an appearance of Fed Chairman, Jay Powell, in front of a Senate Banking Committee. He will be testifying on the Fed’s response to the economic impact of the Pandemic.
Written by Viv Savani. 8:58am, May 19th 2020
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9:28am, May 15th 2020
Sterling Looking Vulnerable As Week Draws to a Close