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Fed Chair Powell Testifies

Due to testify, along with Treasury Secretary Steven Mnuchin, on Coronavirus Aid, Relief, and the Economic Security Act before the Senate Banking, Housing, and Urban Affairs Committee in Washington DC

· Moderna reports positive data on early-stage coronavirus vaccine trial, shares surge

Moderna’s closely watched early-stage human trial for a coronavirus vaccine produced Covid-19 antibodies in all 45 participants, the biotech company announced Monday, sending the company’s shares surging nearly 20%.

Each participant received a 25, 100 or 250 microgram dose, with 15 people in each dose group. Participants received two doses of the potential vaccine via intramuscular injection in the upper arm approximately 28 days apart.

The vaccine also produced neutralizing antibodies against Covid-19 in at least eight participants, the company said. Experts have said neutralizing antibodies appear to be important in acquiring protection.

· Treasury yields jump on coronavirus vaccine optimism

Treasury yields popped on Monday as investors cheered news that an experimental coronavirus vaccine showed promising early signs.

The yield on the benchmark 10-year Treasury note was up 4 basis points at 0.681% and the yield on the 30-year Treasury bond rose 7 basis points to 1.382%. Yields move inversely to prices.

· Dollar struggles as rising oil prices lift commodity currencies

A jump in oil prices lifted commodity currencies such as the Norwegian crown and the Canadian dollar against the U.S. dollar on Monday as optimism about a reopening of economies stifled by the coronavirus pandemic boosted risk appetite.

The gradual easing of lockdowns has raised hope across global markets, despite fresh trade tensions between the United States and China, though traders were wary of taking big bets before more data this week.

The dollar index, which posted gains of about 0.6% last week, gradually gave up early gains and was down 0.12% at $100.25.

U.S. Federal Reserve Chairman Jerome Powell’s willingness to print more dollars and extend the monetary stimulus further to fight the coronavirus economic crisis was welcomed by investors.

Gains in stocks also lifted other major currencies, such as the Australian dollar, which was up half a percent at $0.6446. The euro fell 0.1% to $1.0806.

Against the yen, the U.S. currency fell about 0.25% to 107.30 per dollar after data showed Japan slipped into recession for the first time since 2015. Policymakers are bracing for the nation’s worst postwar slump.

· Retail sales in the US could fall more than 6% in 2020: Euromonitor

There are still so many unknowns regarding the coronavirus pandemic and how it will continue to throttle the retail industry.

But U.S. retail sales could be down at least 6.5% in 2020, according to new estimates from market research company Euromonitor. For comparison, retail sales were down just 2.2% in 2009, the year the Great Recession finally came to a halt, according to the firm. And sales were up 3.3% year over year in 2019, it said.

However, Euromonitor said the factors that could alter its 2020 forecast include the duration of the Covid-19 crisis, the government’s response to the pandemic, the rate at which consumers are comfortable returning to malls and stores, and how retailers are able to react to the dramatic shifts in consumer demand.

· China’s Xi pledges $2 billion to help fight coronavirus

Chinese President Xi Jinping said Monday his country will provide $2 billion over two years to help other countries respond to the impact of the coronavirus pandemic.

The leader of the world’s second-largest economy, where the disease known as Covid-19 emerged late last year, was speaking via video conferencing at the opening ceremony of a key World Health Organization meeting.

“China will provide 2 billion U.S dollars over two years to help with Covid-19 response, and with economic and social development in affected countries, especially developing countries,“ Xi said, according to an official English translation.

Xi added that when a vaccine for the disease is available, it “will be made a global public good.” Some Chinese companies are at the forefront of development and testing for a Covid-19 vaccine.

· Oil prices jump more than 8% ahead of WTI June contract expiry

Oil prices climbed by more than $1 a barrel on Monday to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the coronavirus pandemic spreading.

Brent crude was up $2.00, or 6.2%, at $34.50 per barrel, after touching a high since April 13. U.S. West Texas Intermediate crude was up $2.57, or 8.7%, at $32.01 a barrel, after rising to its highest since March 16.

Reference: CNBC, Reuters, Worldometers