In the early morning of Beijing time, U.S. stocks closed higher on Wednesday, with technology stocks leading the way. The NASDAQ rose more than 2% and the S & P 500 closed close to a record high. News of vaccine progress has boosted global market risk sentiment. Moderna, a vaccine company, announced that it had received 100 million doses of vaccine orders from the U.S. government, worth more than 1.5 billion US dollars.
the record intraday record of the S & P 500 index was 3393.52 on February 19 this year, and the highest closing record was 3386.15 on the same day.
technology stocks were generally higher, with Dow component apple up 3.3%, Microsoft 2.9%, Intel 2.1% and Cisco 1.9%.
Tesla shares closed up more than 13%. The company announced after Tuesday’s closing that the company’s board had approved a plan to split a share into five shares. Holders of shares registered before August 21 will receive an additional four shares of common stock per share, which will be distributed after the closing on August 28. The split shares will begin trading on August 31.
US airlines and cruise companies generally bucked the trend, with carnival cruises down nearly 4%, Norwegian Cruise Lines and Royal Caribbean Cruises down more than 2%. Azul fell by more than 3%, Boeing by more than 2%, Delta Airlines, American Airlines and United Airlines by more than 1%.
trump announced on Tuesday that the U.S. government will purchase 100 million doses of mrna-1273 vaccine from vaccine manufacturer Moderna (mRNA). At present, the vaccine is in late human trials.
Moderna said the deal was worth $1.53 billion and the federal government had the right to order another 400 million doses of vaccine. The company also said the United States has invested $955 million in vaccine development for Moderna, bringing its total investment to $2.48 billion.
another vaccine company, biontech (bntx), reported that the preliminary clinical data of the coronavirus vaccine jointly developed by PFE and PFE showed good tolerance, resulting in a vaccine based immune response.
Russian health minister murashko said at a press conference on the same day that the first batch of “satellite-v” new crown vaccine will be produced in two weeks and can be put into use. “Today, quality control testing is in progress,” he said. Within two weeks, the first batch of vaccines will be available and will be available to medical workers in health-risk groups. ”
on Tuesday afternoon, some important news in the United States also dampened risk sentiment and led to the US stock market’s late dive. According to reports, the Big Ten Conference and pac-12 have announced that they will postpone the rugby league this fall due to the coronavirus epidemic. Until then, the main source of income for these important universities has been worrying. “888” is the most famous champion in the national sports league. The park 12 League is composed of 12 famous universities in the west of the United States, which are good at academic research and sports competition. These member universities have cultivated a large number of sports elites and more than 120 Nobel Prize winners.
Jim Bianco, President and chief executive officer of Bianco research, said in a market interview on Tuesday: “the University Football League is held as scheduled in the autumn, which is the sign that everything is back to normal.”
Bianco said the postponement of the fall college rugby season “proved to everyone in those communities and states that the epidemic is far from back to normal. The most important part of college football in the United States is the southeast League (SEC), which is made up of Southern universities. From Florida State University to Arkansas State University, to South Carolina State University and Clemson University, these schools do not say anything. But I think if their spring Rugby League is also announced to be postponed, it may actually affect the US presidential election. You can ask everyone in those important places to vote, but you’re not ready. It’s not the right time. ”
Mitch McConnell, the Republican leader of the US Senate, said at the close of the US stock market on Tuesday that there was no progress in the economic stimulus negotiations. He told the media that there has been no dialogue between the White House and. “Another day has passed and the two sides are deadlocked and they need to come together,” he said.
since last Friday, key negotiators, including Treasury Secretary Stephen mnuchin, White House chief of staff mark meadows, House Speaker Nancy Pelosi and Senate minority leader Chuck Schumer, have not met to discuss a new package of fiscal stimulus, and lawmakers still have the amount of aid to state and local governments There are big differences.
McConnell said that people in the White House and the house of representatives have not had any discussion since last week’s U.S. House house negotiations on a stimulus package stalled.
according to the analysis, this means that the stimulus package advocated by US President trump, including the reduction of capital gains tax, may not be implemented. Although trump can implement some of his stimulus policies by way of executive orders in the future, it is difficult to compare the amount and effect with the overall bills passed by Congress. In addition, the legal effectiveness of these executive orders will meet with human challenges.
U.S. Treasury Secretary mnuchin again pushed for a more limited next round of stimulus plan on Wednesday, “a little more than $1 trillion,” saying the demand for increased spending could be left for discussion in the future.
mnuchin told the media: “we can talk about it later this year or in January. We don’t have to do everything at once.” He did not announce any plans for follow-up negotiations, saying only that “I can’t guess” the future of the agreement.
mnuchin said: “if people are willing to be reasonable, there will be compromises. If you want to focus on politics and don’t want to do anything that is successful for the president, you can’t reach an agreement. ”
Mr. mnuchin reiterated that the government hoped that Congress would finally approve the exemption of the salary tax that trump had allowed to pay late in his administrative memorandum over the weekend. According to estimates by the federal budget accountability Committee, this could cost $100 billion.
mnuchin also said that the Ministry of finance was studying the guidelines for delayed payment of salary tax. The main challenge for the Department is that some employers are concerned that if they send money to employees for tax deferral, they will face huge payment needs once the delay period is over.
some experts said that US President Trump’s attempt to push forward a new round of negotiations on the anti epidemic assistance plan by bypassing Congress last weekend did not help economic growth.
Trump’s executive orders include a temporary extension of unemployment benefits (at $400 a week), partial deferral of payroll taxes, suspension of federal student loan payments, and possible further suspension of tenant eviction orders. Even if trump can overcome the legal issues surrounding his conduct, economists say his efforts may not have much impact.
according to mark Zandi, chief economist of Moody’s analysis, Trump’s executive order can provide a total of more than $400 billion in relief. Michael feroli, an economist at J.P. Morgan on Monday, said the moves could bring “less than $100 billion” in stimulus money.
by comparison, the total amount of aid plans proposed by the Republican led Senate is $1 trillion, and the total amount of aid bills passed by the leading house of Representatives is more than $3 trillion.
Lydia boussour, a senior American economist at the Oxford Institute of economics, estimates that the total amount of presidential executive order relief will be 0.2% of GDP, which is actually “insignificant”.
some of the measures proposed by trump will take time to develop and may be challenged in court. “They don’t do anything good for anyone here and now,” Zandi said
Trump’s efforts may not cover all the workers relying on aid. For example, unemployment benefits of $400 a week only apply to people who receive at least $100 in state unemployment benefits and may not include some low-income workers. Feroli estimates that the relief will last only about five to six weeks.
in addition, trump also asked states to pay 25% of the $400 grant, putting more pressure on the States, whose budgets were stretched out during the coronavirus crisis.
recently, Jeffrey gunlak, the new bond king, said in the media that the US market will face risks again, and investors will have the opportunity to see the market return to the low point in March.
gunlak believes that the US dollar will not fall further in the short term, but “will definitely fall in the long run.” More than 50% of his GDP is attributed to the government’s pessimism about the long-term deficit. In response, gonlak commented that, so far, the effect of increasing government debt is not inflationary, but deflationary. He believes that if the Fed goes beyond lending tools and monetizes its debt, inflation will rise.
for bonds, gonlak said, “if investors bet on bonds, then TLT (US Treasury ETF with a maturity of more than 20 years) would be a notable option.” He added that he had never been short on US Treasury bonds and did not want to short high-yield bonds.
after the presidential candidate Biden chose camara Harris, a black female senator, as his running mate, gunlac asserted that trump would win the presidential election. Gonlak has successfully predicted that trump will win the 2016 presidential election.
Boeing said on Tuesday that orders for 43 737 Max aircraft were cancelled in July as the number of cancelled orders exceeded the number of new orders for the sixth consecutive month. Most of the orders cancelled by 737 Max came from aircraft leasing companies. Meanwhile, Boeing delivered only four aircraft in July, including a 767 freighter and a 777 Freighter, and two 787 Dreamliners.
gold futures prices closed higher on Wednesday, partially recovering a decline of more than 4% a day earlier. The yield of US Treasury bonds fell from the daily high, and the US dollar fell slightly, providing some support for precious metals.
the reason for the recent weakness of gold price is that the yield of benchmark government bonds has risen steadily recently, which provides investors seeking safe haven with alternative investment objects other than gold and silver, which does not provide yield.
Craig erlam, senior market analyst at OANDA, said in a report that the rise in US Treasury yields on Tuesday “dealt a significant blow to the precious metal market.”
Craig erlam said that as real interest rates in the United States turned negative and continued to fall, gold futures prices this summer hit an all-time high. As a result, the sudden surge in US bond yields in the past few days “has stimulated funds to flee the precious metal market, and market exports have become unusually crowded.”
Lukman otunuga, senior research analyst at fxtm, said: “the outlook for gold prices is still bullish, and the recent correction may open the way to a new historical high as fundamentals stimulate demand for metals. From a technical point of view, if the closing price of gold futures this week is higher than $1900, it may indicate that gold prices will rise further in the medium term
on Wednesday, the price of gold futures for December delivery on the New York Mercantile Exchange rose $2.70, or 0.1%, to $1949 an ounce, before falling to $1874.20 an ounce.