Home Forex News US Stocks Rise On Covid-19 Vaccine Hopes, M&A Optimism

US Stocks Rise On Covid-19 Vaccine Hopes, M&A Optimism

79
0

The US stock market closed firmly in positive territory on Monday, 14 September 2020, on signs of progress in developing a COVID-19 vaccine and a spurt of multi-billion dollar deals. However, market gains capped on caution ahead of the US Federal Reserve two-day policy meeting where it is expected to hold rates while elaborating on the already-announced shift to inflation targeting.

M&A optimism helped investor sentiment on Monday. Oracle and TikTok will become business partners in the United States, and chip-maker Nvidia has agreed to buy British peer ARM for $40 billion from Softbank.

Sentiment was also boosted by positive news on the vaccine front, with AstraZeneca resuming its phase three trial in the United Kingdom and Pfizer CEO Albert Bourla saying over the weekend the company should be able to present key data from its trial to regulators by the end of October.

Traders are looking ahead to the two-day meeting of the Federal Reserve beginning on Tuesday, in which central bankers may elaborate further on their new average inflation targeting strategy that will keep interest rates lower for longer in a bid to maximize employment.

Meanwhile sterling rose 0.6 per cent against the dollar to $1.2870 in yesterday session. The pound dropped almost 4 per cent last week as the UK government revealed legislation overriding big parts of its EU exit agreement, risking a collapse in trade negotiations with Brussels. Ahead of Bank of England monetary policy due on Thursday this week, we think sterling remains choppy amid concerns over expected dovish stance from the rate.

TREND : WEAK BULISH

Time                                      :           15/09/2020

Pivot                                      :           1.1874

Technical View                     :             LONG ABOVE 1.1894

Target                                   :            1.1914, 1.1921, 1.1928, 1.1961

Technical View                     :             SHORT BELOW 1.1854

Target                                   :            1.1842, 1.1834, 1.1821, 1.1803

LEAVE A REPLY

Please enter your comment!
Please enter your name here