Forex Marketz Daily Forex News – Fully Markets Update
Sentiment in the Asian and Pacific Rim soured headed into Friday’s session. This pushed regional indices lower. Reports have surfaced that a possible vaccine for the Covid-19 pandemic has failed.
The Asian benchmark in Japan, the Nikkei 225, lost nearly one percent as shares of Fanuc fell over two percent. The broader Topix index, in Tokyo, was down 0.78 percent.
In South Korea, the Kospi composite index is down over 0.8 percent and elsewhere in the Asian and Pacific Rim, the Australian ASX 200 is up 0.29 percent.
On the mainland in China, the Shanghai composite is down 0.34 percent and the Shenzhen composite has fallen 0.12 percent by lunchtime.
Asian Traders Digest News of a Covid-19 Vaccine Failure
Sentiment in Asia worsened after headlines emerged that Gilead Sciences’ drug remdesivir failed to produce any improvements with patients exposed to the coronavirus.
Gilead said that this study into a vaccine has been “terminated early due to low enrollment.” This led the possible vaccine “underpowered to enable statistically meaningful conclusions. As such, the study results are inconclusive.”
Traders Monitor the EU as they Fail, again, to Agree on a Bailout Plan
The European Union and their finance ministers have failed to reach an agreement with enacting a trillion euro emergency relief fund to insulate against the economic damage from the Covid-19 virus.
The Eurozone finance ministers have left the door open to continue to reach a deal. The Eurozone will do what they can to insulate member state economies the Covid-19 pandemic damages economic activity in the single currency bloc.
Italy and Spain have been hit a lot harder, by Covid-19, than Germany. Germany is reluctant to increase the bloc’s debt load. The more established economies of the euro area, like Germany and France, are not very happy with the notion of being on the hook for the debt of the less stable economies. These nations are in the Mediterranean are. This has brought simmering tensions back to the forefront in the European Union.
The European Central Bank has issued a warning. They say that output throughout the Eurozone could fall as much as 15 percent this year. This makes reaching a deal even more important.
