U.S. Stocks Mixed As Traders Wait For AstraZeneca’s COVID-19 Vaccine DataS&P 500 futures have pared early losses on hopes that EU leaders will negotiate a recovery fund deal.
AstraZeneca Set To Release Phase 1 Trial Results For Its COVID-19 Vaccine
The market expects to hear good news as AstraZeneca shares have rallied in recent days in expectations of encouraging Phase 1 trial results.
While certain countries have had some success in containing the disease, the pandemic continues to progress. According to data from Johns Hopkins University, more than 14.5 million COVID-19 cases have been registered since the beginning of the pandemic.
In this situation, vaccine is the main instrument which will help the world to return to normal life. Thus, positive news on the vaccine front have the potential to significantly move the markets.
EU Leaders Continue To Discuss Coronavirus Stimulus Plan
EU leaders have recently arrived in Brussels to negotiate a massive coronavirus aid package. Today, they will begin the fourth day of talks.
The main problem is that a group of countries which includes Netherlands, Austria, Sweden, Denmark and Finland are opposed to providing grants to less frugal countries without additional conditions.
At this point, 350 – 400 billion euro out of the projected 750 billion euro recovery fund are expected to be distributed in form of non-repayable grants.
The Euro Area was hit hard by coronavirus and clearly needs additional stimulus. Currently, traders hope that the deal will be reached, but failure to negotiate additional stimulus package will likely deliver a severe blow to the world markets.
Gold Is Ready To Test New Highs
Gold continues to benefit from the unprecedented monetary stimulus from the world central banks and uncertainty regarding the timing of economic recovery.
Gold managed to settle above the psychologically important $1800 level and is currently trading near highs reached in the first decade of July.
The rising gold price environment creates a favorable setup for gold mining stocks, many of which still trade below highs reached back in May.
In the near term, a lot will depend on the above-mentioned EU recovery fund talks as successful negotiations will lead to more money-printing which will be bullish for precious metals.
For a look at all of today’s economic events, check out our economic calendar.