Remdesivir ineffectiveness to dampen the bullish mood

Accidental release of Remdesivir clinical trial results in the WHO site caused the market to trade lower today. The report told that there is no improvement in patients’ coronavirus conditions. Gilead share prices took a hit but the company said it is too early to conclude the drug is ineffective as the trial terminated due to low enrollment.

At the current time, analysts suggest waiting for U.S studies to conclude whether the drug works or not. Today, traders and investors will wait for U.S Core Durable Goods Orders data. The data expected to record shrink of 6.1% month to month.

Asian & European Stock market

The Asian stock market mostly lower. Japan’s stock market down 167.44 points (-0.86%) to 19,262.00, China stock market down 29.97 (-1.06%) to 2,808.53 and Australia ASX 200 up 25.50 points (+0.49%) to 5,242.60. The European stock market also slips today. DAX Germany down 0.66%, FTSE UK down 0.59%, Euro STOXX 600 down 0.33%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index continues consolidation inside 22,500 – 24,250 range and might not move outside of the range yet. The index futures currently move higher more than 100 points which indicate higher opening. However, the index might move in roller-coaster mode as the cure for coronavirus might be far-fetched.

It is better to continue to observe the index movement inside the 22,500 – 24,250 range.

Applied Materials Inc (AMAT)

AMAT share prices bullish correction has reached the daily SMA 200. The share prices stuck below the averages but show no major reaction yet. Traders will wait for a reaction from the averages. If there is a major bullish close above the averages then traders will prepare for further bullish movement in the medium-term.