Moderna's Vaccine Rise And Fall
London Capital Group | May 20, 2020 09:57
There is a more sombre tone going into Wednesday. Markets are digesting rather than building on the big gains made on Monday. Doubts cast over the Moderna vaccine trial results knock out one leg from under the market rally. Investors are trying to bake in a scenario where economies reopen and a vaccine is available in time to prevent a second wave. But there are still many unknowns.
Hong Kong and China markets were flat to positive with investors now looking forward to the annual People’s Party Congress which takes place on Friday. UK and European markets are seeing modest losses in early trading, playing some catch-up to the late losses on Wall Street when the Moderna news broke. Futures point to a higher open on Wall Street.
h2 Rolls Royce (LON:RR) job losses/h2Shares of Rolls Royce have sunk 4% in reaction to the engine-maker cutting 9000 jobs. In a positive economy job layoffs will often send shares higher since it lowers wage costs. In such a hard economy for air travel to which Rolls Royce is closely tied, the job losses just spell out the difficulties.
h3 Spotify and Joe Rogan/h3Spotify shares could be in focus after comedian Joe Rogan announced his popular podcast is moving exclusively to the music streaming service. Video streaming has become a battle on ‘exclusive content’ between the different services. This step by Joe Rogan is another sign music streaming is going the same way. Music is heavily-owned by the big record companies so Spotify looks like its making a move into exclusive podcasts. It’s a risky bet by Rogan and Spotify because podcasts have always been an open platform for content. But we see it as necessary if Spotify is ever to break free from the record companies and add value beyond its technology.
h3 GBP: UK inflation/h3The Aussie dollar.
h3 Opening calls/h3Dow Jones to open 170 points higher at 24,376.
SP 500 to open 18 points higher at 2940.
h3 Chart: SP 500 & AUD/USD (3-months)/h3Original Post
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