Global stocks mostly shrug off J&J vaccine woes | Inquirer Business
Close  

Global stocks mostly shrug off J&J vaccine woes

06:30 AM April 14, 2021

(Photo by Angela Weiss / AFP)

NEW YORK – Stocks largely shrugged off surprise problems with the Johnson & Johnson coronavirus vaccine rollout, while bitcoin powered to a record on Tuesday on the eve of a key IPO.

London finished the day close to flat despite news of Britain’s rebounding economic growth and recovering EU exports in February, but Frankfurt and Paris both pushed upwards in the face of bumps in the road.

ADVERTISEMENT

On Wall Street, the S&P 500 edged to a fresh record and the Nasdaq rallied, while the Dow fell modestly.

Shares of US airlines and other sectors tied to the economic recovery initially plunged, but later clawed back some of their losses. Delta Air Lines ended down 1.2 percent while Expedia lost 0.5 percent.

FEATURED STORIES

The J&J problem “isn’t great news, obviously, but it’s nothing people need to go crazy over,” said JJ Kinahan of TD Ameritrade. “We had good momentum with vaccinations heading into summer, and this might slow the momentum, but the other two vaccines are still working well.”

US health authorities recommended pausing the J&J Covid-19 shot over blood clot fears. The company quickly announced it would delay its European rollout, in a setback for global immunization campaigns.

US authorities said the decision was made “out of an abundance of caution” over a disorder that appears similar to that observed in rare cases of blood clots in people who received the AstraZeneca vaccine in Europe.

But the S&P 500’s closing record showed investors took the news in stride.

“There were some concerns the JNJ mishap would contribute to vaccine hesitancy and possibly slow down vaccination/reopening efforts, but the market didn’t overreact to the news,” Briefing.com said after the US market closed.

Fears of Fed hitting brakes

The day started with the Labor Department reporting US consumer price inflation rose to 2.6 percent in the 12 months to March.

Analyst Fawad Razaqzada of Think Markets said “the key question is whether growth optimism will be replaced by inflationary concerns and taper tantrums,” referring to market upset if the Federal Reserve signals an end to easy-money policy.

ADVERTISEMENT

Although central bankers have repeatedly pledged not to change tack until inflation has been elevated for some time and unemployment has fallen, “if we do now see more signs of the US economy heating up, then there could be a noticeable change in tone from the Fed,” Razaqzada said.

Optimism nevertheless appeared intact among  traders as bitcoin zoomed to a record high above $63,000 ahead of Wednesday’s trading launch of the Coinbase cryptocurrency exchange.

“A good debut for Coinbase in Nasdaq will mark the first official juncture between the traditional financial avenue and the alternative crypto path,” said Swissquote analyst Ipek Ozkardeskaya.

“As such, a successful addition to Nasdaq should act as endorsement of cryptocurrencies by traditional investors.”

Key figures around 2050 GMT

New York – Dow: DOWN 0.2 percent at 33,677.27 (close)

New York – S&P 500: UP 0.3 percent at 4,141.59 (close)

New York – Nasdaq: UP 1.1 percent at 13,996.10 (close)

London – FTSE 100: FLAT at 6,890.49 (close)

Paris – CAC 40: UP 0.4 percent at 6,184.10 (close)

Frankfurt – DAX 30: UP 0.1 percent at 15,234.36 (close)

EURO STOXX 50: UP 0.1 percent at 3,966.99 (close)

Tokyo – Nikkei 225: UP 0.7 percent at 29,751.61 (close)

Hong Kong – Hang Seng Index: UP 0.2 percent at 28,497.25 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,396.47 (close)

Euro/dollar: UP at $1.1947 from $1.1911 at 2100 GMT

Pound/dollar: UP at $1.3751 from 1.3741

Euro/pound: UP at 86.89 pence from 86.68 pence

Dollar/yen: DOWN at 109.06 yen from 109.38 yen

Brent North Sea crude: UP 0.6 percent at $63.67 per barrel

West Texas Intermediate: UP 0.8 percent at $60.18 per barrel

gsg
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: global stocks, J&J, Stock Market, vaccine
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.