Pharmaceutical giant Eli Lilly overnight joined Johnson and Johnson in pausing its trials of a Covid-189 vaccine, also citing safety concerns. The v-shaped recovery scenario that has driven risk markets higher is dependent on the availability of an effective vaccine. While there are many other groups in the race for this vital development, the withdrawal of two major players raises concerns.
Industrial metals and northern hemisphere shares fell in overnight trading, despite better than expected China trade data yesterday. Bonds rallied, but a rush back into US dollars saw gold prices fall. Commodity currencies are under pressure, but cryptocurrencies maintained higher ground.
European stocks dropped, led by the German Dax. Apple unveiled its iPhone 12 range, but the stock fell 3% in a “sell the fact” reaction to the long anticipated release. The Nasdaq still managed to outperform other major US indices, defying the pressure on the tech flagship.
Futures markets point to opening falls of across the Asia Pacific region today. Singapore GDP data is expected to show a 33.5% expansion in the third quarter compared to the second, although this still means a 6.8% drop year on year.