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ZFX: Covid-19 vaccine hopes drove the markets! - Zeal Capital Market

ZFX: Covid-19 vaccine hopes drove the markets!

19-05-2020 06:34

A big positive news drove the market move on Monday. Moderna, a Biotech company in the US, reported that the result of the phase 1 human trial for its coronavirus vaccine candidate was positive, which lifted the market sentiment. The Wall Street three major indexes soared, of which the Dow jumped nearly 4%, closed 911 points higher.

On the other hand, investors are now looking forward to the reopening of the global economies, further boosting risk appetite.

ZFX analyst Jacob Leung said that it is no doubt that the vaccine development is a breaking news during such a pandemic period, which can further drive the hopes on the restart of the economies.

Currently, many countries already start to ease the lockdown measures by steps. The rally of oil prices also propped up optimism. Even though there is rising tension between the China and the US, the “risk on” mode is switching on.

On Monday, the greenback lost against major currencies under such risk appetite condition. The gold price, after hitting its highest since October 2012, also retreated sharply from $1765 to $1727.

ZFX analyst Jacob Leung said that the market sentiment may keep improving, so that riskier assets may be benefited at least in the coming days. Volatility is lower comparatively, encouraging investors to place the bet.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.