Wednesday 14th October: Investor sentiment falters as drug & vaccine trials paused

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.11%, Shanghai Composite down 0.56%, Hang Seng up 0.09%, ASX down 0.27%
  • Commodities : Gold at $1900.05 (+0.29%), Silver at $24.29 (+0.66%), Brent Oil at $42.25 (-0.47%), WTI Oil at $39.98 (-0.55%)
  • Rates : US 10-year yield at 0.724, UK 10-year yield at 0.216, Germany 10-year yield at -0.571

News & Data:

  • (USD) Core CPI m/m 0.20% vs 0.20% expected
  • (USD) CPI m/m 0.20% vs 0.20% expected
  • (GBP) Claimant Count Change 28.1K vs 78.8K expected
    Senior EU official says UK-EU trade deal ‘difficult but still possible’

Markets Update:

Asian stock markets are mostly lower on Wednesday following the negative cues overnight from Wall Street amid uncertainty about a new stimulus bill as House Speaker Nancy Pelosi and the White House struggled to reach an agreement on a broad relief package.

Investor sentiment was further dampened following news that U.S. health regulators have paused Eli Lilly’s late-stage trial of its antibody treatment for COVID-19 due to potential safety concerns. Earlier, Johnson & Johnson had paused a late-stage trial of its Covid-19 vaccine candidate due to an unexplained illness in a study participant.

The Nikkei 225 bucked the overall trend among the region’s major markets as it rose 0.1%. The Hang Seng index in Hong Kong slipped 0.1%. Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.6% while the Shenzhen component declined 0.8%.

Oil slipped too on concerns that fuel demand will continue to falter as rising coronavirus cases across Europe and in the United States, the world’s biggest oil consumer, could impede economic growth.

TheU.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.591 following levels below 93.3 seen earlier this week.

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