Global stocks pause rally on J&J vaccine setback; Dollar rebounds of three-week lows

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Global stocks pause rally on J&J vaccine setback; Dollar rebounds of three-week lows

On Tuesday, a gauge of global stock indices including the US and EU shares met with a withering whiplash after the American pharmaceutical and consumer goods company Johnson & Johnson had paused its late-stage clinical trial citing unexplained illness in a trial participant, while investors seemed to have brushed aside stimulus hopes amid rising uncertainties over a pandemic vaccine.

Aside from that, following reveal of a downsized US stimulus bill alongside another setback on pandemic vaccine trial had been the major mover on Tuesday’s market, while the American Dollar and Government bonds had regained their safe-haven bids, as market participants had been in a flight-to-safety mode.

Nonetheless, despite Tuesday’s tottering of major global stock indices, Wall St. analysts were quoted saying that the global money markets would unlikely to continue their latest holocaust as a majority of investors in the United States and EU remained convinced that a large-scale pandemic stimulus bill had been on its way, though it might not be made available until the November 3 Presidential election.

Global stocks, Wall St. fall; Dollar bounces back from three-week lows

Citing statistics, as a stronger American currency had pushed the Wall St. lower, sapping a four-day long winning streak, the S&P 500 shed 0.64 per cent to 3,511.76 and the trade-sensitive Dow lost 0.55 per cent to 28,680.33, while the tech-heavy Nasdaq fell 0.1 per cent to wrap up the day at 11,863.90.

In Europe, the regional pan-European STOXX 600 had shrugged off 0.77 per cent, snapping its three-day long streak of gains, with major European money markets in Frankfurt, London and Paris mirroring the index’s losses.

Apart from that, as a fleshed-up American currency had largely weighed on safe-haven gold futures alongside equity markets across the globe, the US Dollar Index (DXY) measured against a basket of six major currencies rose 0.51 per cent to 93.52, remarking its best intra-session percentage gain in more than three weeks, while against the greenback, the bloc’s single currency euro was down by 0.56 per cent to $1.1746 and Pound pummelled 0.96 per cent to $1.2939.

Meanwhile, addressing that money markets across the globe had been awaiting a large-scale stimulus package, a chief market strategist a SlateStone Wealth LLC in Florida, Ken Polcari said on the day’s market wind down, “Markets have already priced in perfection. It’s ‘buy the rumour, sell the news. ’”