Global markets climb on vaccine optimism
Vrasidas Neofytou
Head of Investment Research
Market Brief, Wednesday, 15th of July, 2020
US stock markets rose 1% on Tuesday after the biotech firm Moderna announced that its coronavirus vaccine produced antibodies in all patients in an early trial, raising hope for a faster economic recovery.
Asian markets were mostly higher following the overnight gains in Wall Street. However, the Chinese indices and Hang Seng fell 1% after Trump’s administration ended Hong Kong’s special status.
Crude oil prices gained 2% on Tuesday following the huge drop in the US crude inventories, in a sign of improving fuel demand, despite the rising infection cases in the US. Also, OPEC and its allies will meet later today to decide whether to extend or ease the current output cuts.
Gold prices traded higher on Wednesday, holding firm above the key $1,800 level, gaining support from the US dollar’s weakness, the surging coronavirus cases and the latest China-U.S. tensions.
Looking at the forex market, we can see the strength of the Euro against the US dollar, where it rose to as high as 1.14, its highest level since March; in response to the prospect of a new stimulus ahead of a crucial EU summit.
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