European Open – FDA Gives Markets a Boost

Trump Pushing For Pre-Election Vaccine

Europe is off to a strong start on Monday as investors play catch up following the late rally on Wall Street on Friday and as stocks in Asia make strong gains.

Broadly speaking, it’s a pretty slow start with investors already having an eye on the events later in the week as the Jackson Hole Symposium adapts to the virtual world we now all exist within.

That doesn’t change anything, as far as investors are concerned, as the zero in on speeches from various central bankers, with the key note from Fed Chair Jerome Powell the headliner. Markets have naturally been very sensitive to vaccine developments in recent months and it seems we’re getting a bit of a bump this morning once again.

The FDA issued Emergency Use Authorisation for the use of Covid-19 convalescent plasma on Sunday, citing early evidence that it reduces mortality and improves the healthy of patients within the first three days of hospitalisation.

Trump is determined to deliver a vaccine before the 3rd November election, something that could be a gamechanger for the President as he looks to secure an unlikely second term, if the polls are to be believed.

Trump is also hoping for fast track authorisation for the Astrazeneca/Oxford University vaccine that is currently in clinical trials but falls short of the number of participants usually required for FDA approval.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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