· S&P stumbles as Moderna sinks on report questioning trial results
The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna’s recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading.
The benchmark index surged more than 3% on Monday, boosted by Moderna’s promising early-stage data for a COVID-19 vaccine and Federal Reserve Chair Jerome Powell’s pledge over the weekend to support the economy as needed until the crisis has passed.
Powell, in testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and Congress should consider anything to keep people out of insolvency.
The Dow Jones Industrial Average .DJI fell 390.51 points, or 1.59%, to 24,206.86, the S&P 500 .SPX lost 30.97 points, or 1.05%, to 2,922.94 and the Nasdaq Composite .IXIC dropped 49.72 points, or 0.54%, to 9,185.10.
· European markets close lower as investors monitor coronavirus vaccine progress, economic data
European stocks finished in the red on Tuesday, halting the positive trend set at the start of the week, as investors monitored hopes for a coronavirus vaccine and outlooks for economic recovery.
The pan-European Stoxx 600 reversed earlier gains to slide 0.5%. Autos tumbled 1% to lead losses while insurance stocks bucked the negative trend to edge 0.3% higher.
On the data front, new EU car registrations fell 76.3% in April, from the same month a year ago, according to data published Tuesday from the European Automobile Manufacturers Association (ACEA).
Germany’s closely-watched ZEW survey of economic sentiment for May showed a much greater-than-expected improvement on Tuesday, with consumers hoping for an economic recovery in the second half of the year as Europe’s largest economy looks to exit lockdown measures.
It comes amid growing hopes of a potential coronavirus vaccine after a positive development from a Moderna trial.
· Asia Pacific stocks mixed as investors await release of China’s benchmark lending rate
Stocks in Asia Pacific were mixed in Wednesday morning trade as investors await the release of China’s benchmark lending rate.
In Japan, the Nikkei 225 rose 0.42% while the Topix index gained 0.13%. South Korea’s Kospi was largely flat.
Over in Australia, the S&P/ASX 200 declined 0.81%.
Overall, the MSCI Asia ex-Japan index traded 0.18% lower.
The monthly fixing of China’s loan prime rate is set to be released at around 9:30 a.m. HK/SIN on Wednesday, with little expectation for the benchmark lending rate to change, according to a Reuters survey of traders and analysts.
Investors also watched for market reaction to a STAT News report released overnight that raised concerns about the trial results for a potential coronavirus vaccine from Moderna. That initial positive development had sent markets rallying earlier in the week.
Reference: CNBC, Reuters
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