Whether the FDA approves a COVID-19 booster shot or not, Pfizer and Moderna have already made their money

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MarketWatch 22 September, 2021 - 02:06pm 47 views

The Federal Reserve surprised markets on Wednesday with a slightly more hawkish tone from its board members following a two-day Federal Open market Committee that concluded today. 

The outcome gave rise to volatility across financial and commodity markets yet left some questions as to why the US dollar was down on the knee-jerk and risk assets higher. 

Evidently, there has been a lot of pent-up demand for risk associated assets given the coronavirus spread, higher inflation prospects and an underbelly of risk associated with China.

A Gray Rhino event that took markets off guard last week came with what was once China's leading property developer, Evergrande, coming very close to defaulting on billions of dollars of debts liabilities. 

However, the debt-laden property developer has agreed to settle interest payments on a domestic bond on Wednesday and the Chinese central bank injected cash into the banking system, temporarily soothing fears of imminent contagion in financial markets. 

What we are seeing is a relief rally in that the Fed is likely still no closer to a taper announcement, in reality, to where it was last month despite the hawkish tone from its statement and the dot plot. The most hawkish of the market was looking for a fixed announcement of when the taper will commence and we did not get that today.

Instead, it is slightly more probable that an announcement will come next month, depending on the next employment report. A really bad jobs report next month would likely prevent lift-off in terms of tapering. However, rate lift-off may be closer at hand according to the dots. Therefore, the dollar could still attract some demand near-term once the dust settles today. 

Federal Reserve chairman's press conference is underway. Jerome Powell is now answering questions related to the timings of tapering as well as inflation, economic outlooks and rate hikes. Evergrande and corporate debt is also a topic in discussion and Powell feels there is not a lot of direct exposure to the US nor its corporate sector as a parallel. 

AUD/USD is better-bid as it moves in on the 50% mean reversion target, as projected in the following prior analysis

As seen, the target has since been achieved and the dollar is battling back, forcing the price into support again. This could equate to the next leg lower if a hawkish Fed gains traction over coming days and weeks. 

The US stock market is still trying to digest the conflict between the hawkish Fed and the Evergrande situation. However, the levels have been marked between near 4,380 and near 4,420 in the case of the S&P 500 benchmark. 

The Us dollar is catching a bid here at the time of writing as Powell gives the nod to taper next month:

However, while there are prospects of a break-out, there is still a lot more work needed by the bulls until the greenback proves it worth when looking to the daily chart:

 93.50 is a critical level ahead of 93.80. Only a break of 93.80 will likely seal the deal for the bulls with targets into the 94 areas and above as earlier than expected US rate rise sentiment takes traction in markets. 

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EUR/USD has reversed course, plunging under 1.17 after the Fed signaled tapering of bond buys as soon as November, and the conclusion of the process in mid-2022. The hawkish surprise means a rate hike could come sooner. 

GBP/USD bears keep controls around 1.3620 amid the initial Asian session on the Super Thursday, after refreshing the monthly low with 1.3609 due to the Fed tapering before a few hours. The cable pair’s recent fall broke an ascending support line from July, which in turn joins bearish MACD signals to hint at the quote’s further downside.

EUR/USD has reversed course, plunging under 1.17 after the Fed signaled tapering of bond buys as soon as November, and the conclusion of the process in mid-2022. The hawkish surprise means a rate hike could come sooner. 

Ripple price came down 20% since the beginning of this week. With some upside today, bulls stand to face a bull trap that could get quite painful. A better entry point at $0.78 looks to be more promising for bulls.

Powell surprised by signaling taper announcement could come in November. Tapering may end by mid-2022, opening the door to earlier rate hikes. Powell's comment on employment goal "all but met" is a significant hawkish shift. 

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Vaccine inequality laid bare at UN General Assembly

CNN 22 September, 2021 - 06:05pm

Updated 8:19 AM ET, Wed September 22, 2021

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FDA still silent on Covid booster shots as key CDC panel concludes first day of a two-day meeting

CNBC 22 September, 2021 - 04:14pm

The Food and Drug Administration still hasn't announced whether it will authorize Pfizer-BioNTech Covid booster shots for some Americans even as a key Centers for Disease Control and Prevention vaccine advisory group concludes its first day of a two-day meeting on the topic.

Usually, the FDA announces its decision on certain vaccines or drugs before the CDC and its Advisory Committee on Immunization Practices take their turn to meet and issue their own recommendations. The CDC panel is supposed to vote on the booster shots Thursday, but officials said they will postpone that meeting if the FDA's decision isn't announced by the time the committee reconvenes at noon.

The FDA's Vaccines and Related Biological Products Advisory Committee on Friday overwhelmingly rejected a plan to distribute the extra shots to Americans 16 and older, before unanimously embracing an alternate plan to give boosters to older Americans and those at a high risk of suffering from severe illness.

Read CNBC's latest global coverage of the Covid pandemic:

Average daily U.S. Covid deaths climb above 2,000 for the first time since March   

CDC says nursing home residents are still at risk for Covid with low vaccination rates among staff   

It was considered a controversial recommendation because the Biden administration has said it wants to begin offering booster shots to the general public as early as this week, pending authorization from U.S. health regulators.

It's now up to FDA regulators to decide whether they will accept the FDA advisory committee's recommendation — which it often does — or perhaps depart from the advice given and increase the number of people eligible to get the extra shots.

An FDA spokesperson declined to provide information on the timing of the agency's decision.

The FDA still has some time. The CDC advisory group isn't expected to vote on who should get Pfizer booster shots until Thursday afternoon, and federal health officials indicated earlier Wednesday that the vote may be pushed to another time if the FDA hasn't made its decision by then.

During the meeting Wednesday, CDC advisors listened to several presentations on data to support the wide distribution of booster shots, including one presentation from a Pfizer executive, who displayed data that showed a third shot appears to be safe and boost antibody levels in recipients.

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Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

FDA still silent on Covid booster shots as key CDC panel concludes first day of a two-day meeting

CNBC Television 22 September, 2021 - 04:14pm

The Food and Drug Administration still hasn't announced whether it will authorize Pfizer-BioNTech Covid booster shots for some Americans even as a key Centers for Disease Control and Prevention vaccine advisory group concludes its first day of a two-day meeting on the topic.

Usually, the FDA announces its decision on certain vaccines or drugs before the CDC and its Advisory Committee on Immunization Practices take their turn to meet and issue their own recommendations. The CDC panel is supposed to vote on the booster shots Thursday, but officials said they will postpone that meeting if the FDA's decision isn't announced by the time the committee reconvenes at noon.

The FDA's Vaccines and Related Biological Products Advisory Committee on Friday overwhelmingly rejected a plan to distribute the extra shots to Americans 16 and older, before unanimously embracing an alternate plan to give boosters to older Americans and those at a high risk of suffering from severe illness.

Read CNBC's latest global coverage of the Covid pandemic:

Average daily U.S. Covid deaths climb above 2,000 for the first time since March   

CDC says nursing home residents are still at risk for Covid with low vaccination rates among staff   

It was considered a controversial recommendation because the Biden administration has said it wants to begin offering booster shots to the general public as early as this week, pending authorization from U.S. health regulators.

It's now up to FDA regulators to decide whether they will accept the FDA advisory committee's recommendation — which it often does — or perhaps depart from the advice given and increase the number of people eligible to get the extra shots.

An FDA spokesperson declined to provide information on the timing of the agency's decision.

The FDA still has some time. The CDC advisory group isn't expected to vote on who should get Pfizer booster shots until Thursday afternoon, and federal health officials indicated earlier Wednesday that the vote may be pushed to another time if the FDA hasn't made its decision by then.

During the meeting Wednesday, CDC advisors listened to several presentations on data to support the wide distribution of booster shots, including one presentation from a Pfizer executive, who displayed data that showed a third shot appears to be safe and boost antibody levels in recipients.

Got a confidential news tip? We want to hear from you.

Sign up for free newsletters and get more CNBC delivered to your inbox

Get this delivered to your inbox, and more info about our products and services. 

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

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