Covid vaccine, Novavax, delay rumours, weighing on sentiment

Ross J Burland FXStreet

There is a rumour that the Novavax vaccine is delayed, which has seen the stock drop some 6% in recent trade.

Novavax, Inc. (Nasdaq: NVAX), is a late-stage biotechnology company developing next-generation vaccines for serious infectious diseases, including NVX-CoV2373, the Company’s COVID-19 vaccine.

The news of the delay is problematic for risk-sensitive asset classes as financial markets bare the latest alarming surges of the course throughout Europe and the US.

Both European and US stocks have had a terrible start to the week on the back of the second wave headlines of the weekend and the latest update from data compiled by Johns Hopkins University:

Confirmed global cases of COVID-19 has soared to 43 million according to the latest The death toll has also climbed to 1.15 million.

The latest surge has forced many European countries to tighten restrictions on activity.

The US infections have also skyrocketed past the prior peak of July, forcing El Paso in Texas to ask citizens to stay at home for the next two weeks.

The negative sentiment has fed through to Wall Street setting the Dow for its worst day in more than seven weeks.

At the time of writing, the major indexes are down Dow 2.29%, S&P 1.89%, Nasdaq 1.58%, albeit off their worst levels of the day, so far.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold trims gains, returns to $4,100

Gold now surrenders part of its initial bull run and appears on its way to challenge the key $4,100 region per troy ounce on Thursday. The precious metal extends it recovery on the back of the tepid advance in the Greenback and mixed US Treasury yields following the US midterm elections.

XRP gains ground as Ripple CEO says US crypto users aren’t going anywhere after midterms, calls for clear rules

Ripple (XRP) ticks higher on Thursday, trading near $1.32. The remittance token is up roughly 10% from last week’s trough at $1.20, suggesting that the path of least resistance is gradually flipping upward.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.