Different day, same reaction; but will there be a follow through on the latest round of optimism?
The market is reacting to the Moderna vaccine news in the same way as the Pfizer announcement last weekRisk is rallying as equities are jumping and bonds are slipping after the Moderna announcement. USD/JPY got a quick pop to above 105.00 but is running into some near-term resistance from its 100-hour moving average.
US futures are also posting better gains for the most part with a similar rotation play taking place. Dow futures are up 1.7% while Nasdaq futures have slumped into negative territory. Meanwhile, S&P 500 futures are up by 1.1%.
However, just like it was the case last week, is there going to be much follow through buying from here? The Moderna news should've been well telegraphed to the market by now, yet the jump in risk trades are relatively impressive.
Sure, there is the difference that it is much easier to be transported compared to the Pfizer vaccine. But in terms of the availability timeline, there isn't much difference.
The pop from the Pfizer news last week faded into the close and the market consolidated after, will there be a repeat this time around or are buyers going to find this news enough to break the contrast in the prevailing market narratives?