· S&P 500 slips after report on coronavirus drug trial
The S&P 500 ended marginally lower on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomized clinical trial, denting optimism that the pandemic’s impact on the labor market was nearing an end.
All three main U.S. stock indexes fell back from gains of over 1% after the Financial Times reported that a Chinese trial showed that Gilead Science’s (GILD.O) remdesivir did not improve patients’ condition or reduce the pathogen’s presence in the bloodstream.
Gilead said results from the study were inconclusive as it was terminated early.
Last Friday, Wall Street rallied in part because of a report that COVID-19 patients in a separate study had responded positively to remdesivir.
The Dow Jones Industrial Average .DJI rose 0.17% to end at 23,515.26 points, while the S&P 500 .SPX lost 0.05% to finish at 2,797.8.
The Nasdaq Composite .IXIC slipped 0.01% to 8,494.75.
· S&P cuts Commerzbank rating, revises outlook for Deutsche Bank to negative
The credit agency S&P said on Thursday that it had cut Commerzbank’s (CBKG.DE) credit rating by a notch and lowered its outlook for Deutsche Bank (DBKGn.DE) to negative from stable, as prospects for the lenders grow increasingly bleak amid the coronavirus outbreak.
The steps were part of a sweeping move by S&P for multiple lenders in Germany and elsewhere, and follow a similar effort by Fitch, another credit rating agency, last month.
“We expect bank earnings, asset quality, and in some cases, capitalization, to weaken meaningfully through year-end 2020 and into 2021,” S&P said in a statement.
Both banks, which are now rated BBB+ with a negative outlook, declined to comment.
· European stocks close higher with coronavirus, earnings and oil prices in focus
European stocks closed higher Thursday as the coronavirus pandemic, oil prices and corporate earnings remained in focus for investors.
The pan-European Stoxx 600 closed 1% higher provisionally, after whipsawing earlier as economic data out of the euro zone showed record deterioration due the coronavirus crisis. Oil and gas stocks soared 3% after oil prices appeared to stabilize.
· Asia stocks dip as hopes of coronavirus treatment reportedly take a hit
Stocks in Asia declined in Friday morning trade after an overnight report that raised doubts over a potential coronavirus treatment.
The Nikkei 225 in Japan shed 0.71% while the Topix index declined 0.79%. Over in South Korea, the Kospi fell 0.6%.
Shares in Australia also traded lower, with the S&P/ASX 200 down 0.11%.
Overall, the MSCI Asia ex-Japan index traded 0.17% lower.
The moves regionally came following an overnight report by the Financial Times — citing documents accidentally published by the World Health Organization — saying that Gilead Sciences’ drug remdesivir did not improve coronavirus patients’ condition. The documents cited by the FT referred to a Chinese clinical trial.
Reference: Reuters, CNBC
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