Risk Jumps on COVID19 Drug News
Coronavirus drug approval drives risk assets.
Welcome to a new trading week, today’s started flat but changed very quickly, risk markets have seen non-stop buying across the boards so far today.
News that the European Commission has approved a drug for the treatment of COVID19, jump-started buyers. Since this point risk assets have continued to expand gains. Please note that this is a conditional approval at this stage. The drug is remdesivir, it’s antiviral treatment and is produced by Gilead. News is also out that the UK is in on a 500 million pound deal with Sanofi and GlaxoSmithKline for 60 million doses. This is not that new as the U.S was reported to be buying 500,000 treatment courses last week.
The markets have seen this a big positive and combined with recent better than expected economic data for set the stage for today’s strong buying.
Buying has been across FX and stocks, the AUD and EUR have led the gains as this stage to the USD and JPY. Stocks have also jumped with U.S futures seeing solid gains in the out of hours.
EURJPY +0.60% – AUDUSD +0.71%
Dow +1.37% – Nasdaq +1.27%
If this turns out to be what we’re looking for then this is great news, life may be able to start getting back to the normal we remember in 2019. Putting an end to further unnecessary loss of life and destruction or peoples lively hoods.
Most risk market charts look good at this stage in the day, we have the NDX100 D1 below as once again it’s raced to new record highs after adding 1.30% to this point in the day.