Good afternoon, it is September 9th 2020 and here is your economic and market update from BlackBee.
- Volatility back in markets.
- Oil prices drop on the back of a rise in Covid cases.
- AstraZeneca pauses vaccine trial.
Volatility is back in markets as US stocks fell for a third consecutive day. The fall was led by the same big profile companies that drove the rally. The Nasdaq closed -4.11% lower with major companies such as Apple (-6.73%), Tesla (-21.06%), Microsoft (-5.41%) and Amazon (-4.08%) falling yesterday. The S&P500 closed -2.78% lower and the Dow Jones declined -2.25%. The Stoxx Europe 600 fell -1.15%. Oil suffered big losses as West Texas Intermediate fell -7.3% to $36.89 a barrel. Source: Bloomberg
When the pandemic originally hit markets, the price of oil plummeted as demand disappeared due to lockdown measures. West Texas Intermediary (WTI) plunged into negative territory for the first time ever in April, to the point where suppliers were paying buyers to take the oil off their hands. Since last Wednesday, WTI has fallen nearly 15% and is now trading around $37 a barrel. Brent crude, which is the global benchmark, has fallen 13.4% in the same period and is trading around $39 a barrel. The price of oil is falling again on the back of concerns that a resurgence in cases would slow down recovery in the energy sector as demand is likely to be impacted.
UK pharmaceutical company AstraZeneca, which was on the path to be one of the first companies to deliver results from a large vaccine trial, has temporarily suspended testing due to a participant having a suspected serious reaction. In August, it was learned that the Trump administration was considering fast-tracking the vaccine from AstraZeneca for use prior to the November elections. AstraZeneca is now conducting a review to judge the length of the delay in the trial that this will cause. Pauses in trial treatments are common and this may not be the last pause before a vaccine is released.
Best & Worst Performers of Large Cap US Stocks on Tuesday
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Global Market Update
(as at close of markets 08/09/2020)