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Morning Market Wrap: US equities post mixed results

2 Jul 2020
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In early morning trade, US equity markets were expected to start lower with futures down however pharmaceutical giant Pfizer boosted sentiment after announcing promising results of a potential Covid vaccine currently in development.

Pfizer in partnership with BioNTech said initial results of the vaccine showed neutralizing anti-bodies in patients who have the virus and provided it receives regulatory approval from the Food and Drug Administration (FDA), the two companies can produce up to 100 million doses by the end of 2020. Pfizer shares jumped 3.18%. The S&P500 gained 0.5% for the day whilst the Dow Jones Industrial fell -0.3%, largely dragged by Boeing (down -1.6%). Strong manufacturing activity data also boosted markets, the US manufacturing index rose to near all-time high levels seen during April 2019. Revised payroll data also indicated some promising figures with 2.37 million jobs added in June in addition to the 2.5 million in May which was initially a negative figure, yet was later revised by the Labour Department. Large technology companies also had a strong session, Amazon and Netflix shares surged 4.35% and 6.72% respectively. The Nasdaq index rose 1% on Wednesday. Apple stock retraced modestly after the announcement to reclose 30 stores across California. Investors remain anxious as growing virus numbers across the US dampen sentiment.

ASX200 futures were up 42 points in early trade, indicating a positive start to Thursday’s session. The Australian market started the new financial year in positive fashion yesterday, rising 0.6% to 5,934.40 points. Strong June manufacturing data from China encouraged local investors on hopes of a steady economic recovery. The big 4 banks lifted markets, all posting gains between 0.7%-1.9% together with gold stocks including Northern Star and Newcrest Mining, both up 7% and 3.2% respectively. The bullish move in markets over the past 3 months has been recently cautioned as we monitor new virus cases domestically and in the US.

*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.

Global oil prices lifted on Wednesday after US crude inventories fell by over 7 million barrels last week. Brent crude jumped 1.8% to US$42.03 a barrel. Iron ore dipped modestly, down 0.3% to US$100.75 a tonne and Spot gold is trading at US$1,771 an ounce. The AUD is 0.2% higher trading at 69.17 US cents.

In terms of economic data, in Australia we expect the release of international trade data. Abroad the US nonfarm payrolls, initial jobless claims and factory orders are all set to be released.

 

This article was written by Charles Odontuyaa – Account Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3623.

Rivkin does not ever provide financial advice. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.

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