ZFX: Vaccine optimism cooled, investors tend to be cautious
On Wednesday European session, investors are cautious as the market doubted the good news from the coronavirus vaccine development. According to the STAT News report, several experts said that Moderna, a Biotech company in the US, did not provide enough information to assess the effectiveness of the Covid-19 vaccine.
The investor sentiment weakened after the news on Tuesday, causing the three major Wall Street indexes closed lower, of which the Dow dropped nearly 1.6%. Today, Asian stocks were under pressure in such situation.
Now, the optimism is fading out, investors are just closely monitoring the latest news of the vaccine. On the other hand, as many countries are starting to resume economic activities, the market may be even more sensitive to the announcement of the economic figures, which can give basic insight for the recovery.
ZFX analyst Jacob Leung said that although the hopes for the vaccine seem to have faded out, it was not that bearish to the market. Investors are currently looking forward to more Fed policies, after the Powell’s speech these days. Weak dollar is generally supportive to the financial markets. Of course, the tension between China and the US was still a key concern recently. However, without specific and substantial actions from two sides, the overall impact on the market sentiment would be just in short term.