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Dow Jones Steady as Tech Stocks Rally, Hang Seng May Rebound(Jun 30, 2021)
DOW JONES, Hang Seng, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.03%, +0.03% and +0.33% respectively
- A lab report showed that Moderna’s Covid-19 vaccine is effective against the Delta variant viral strain
- Asia-Pacific markets are positioned to trade slightly higher. China NBS manufacturing PMI in focus
Delta Variant, Moderna’ Vaccine, NBS PMI, OPEC+, Asia-Pacific at Open:
The Dow Jones Industrial Average traded modestly higher as concerns surrounding the Delta variant eased. Pharmaceutical company Moderna published a lab report on Tuesday, which showed its Covid-19 vaccine is effective in producing antibodies against the newly found viral strain from India. Moderna’s share price surged more than 5% on Tuesday, hitting an all-time high. Yet, questions remain on the production capacity and distribution of Moderna’s vaccine around the globe as new viral strains continue to spread and mutant.
The Delta variant was attributed to the recent surge in Covid-19 cases in the UK and Australia, and may threaten a new round of lockdowns and travel restrictions around the world. This may cast a shadow over a fragile and unbalanced recovery of the global economy, especially to countries that have relatively slow vaccination progress. A worsening pandemic situation may benefit the technology sector, which tends to outperform cyclical ones during the depth of the pandemic. Therefore, the Nasdaq 100 index may continue to outperform Dow Jones in the days to come.
