The FDA granted full approval for the two-dose Pfizer-BioNTech vaccine for Covid-19
Wall Street stocks rallied overnight after the FDA granted full approval for the two-dose Pfizer-BioNTech vaccine for Covid-19. Against this backdrop, Pfizer shares rose 2.4%, BioNTech’s stock rallied 9.5% and Moderna advanced 7.5%.
Meanwhile, energy stocks led the gains as oil prices jumped over 5% after a 7-day losing streak. The S&P 500 added 0.8% to close just shy of a record high. The tech-heavy Nasdaq Composite rose about 1.5% to hit a record closing high, while the Dow Jones Industrial Average gained 0.6%.
Boosted by a rise on Wall Street, Asian markets extended gains on Tuesday. However, the upside momentum began to abate as investors are getting more cautious ahead of the annual conference in Jackson Hole due later this week. Also, worries about surging coronavirus infections persist. Anyway, Japan’s benchmark Nikkei 225 rose 0.87%, South Korea’s Kospi gained 1.56%, Hong Kong’s Hang Seng added 2.46% and the Shanghai Composite was up 1.07%.
In Europe, equities opened higher as well, with the pan-European Stoxx 600 climbing 0.4% in early trade. On the data front, German GDP grew by 1.6% in the second quarter, up from the 1.5% preliminary estimate, driven primarily by consumers and state spending.
In currencies, the USD index has settled within a narrow range around the 93.00 figure, struggling for direction following a sell-off seen on Monday as flash PMI prints came in below estimates. Later today, new home sales are due seconded by the Richmond Fed index.
Meanwhile, oil prices extend the recovery on Tuesday, flirting with the $69 figure during the European hours amid upbeat risk sentiment in combination with a weaker dollar. Brent crude could regain the $70 level in the near term if investor sentiment remains positive and the API report reveals a decline in crude oil and gasoline inventories.