Key Takeaways
- EU regulators have backed Moderna's (MRNA) updated COVID-19 vaccine, opening up new opportunities for the company's expansion in the European region.
- Brazilian President Lula da Silva has strongly criticized U.S. President Donald Trump's proposed 50% tariffs on Brazilian goods, emphasizing Brazil's sovereignty and willingness to negotiate but not accept impositions.
- The S&P 500 and Nasdaq 100 indices have risen to new session highs, driven by positive trade news and strong earnings, particularly in the technology sector.
- Ceasefire talks for Gaza, mediated by Qatar, Egypt, and the United States, have paused for consultations, with negotiations expected to resume next week despite a lack of significant breakthroughs.
- U.S. lawmakers are urging the FDA to take action against compounded and fake GLP-1 drugs, leading to a rise in shares for pharmaceutical companies like Eli Lilly (LLY) and Novo Nordisk (NVO).
EU regulators have given their backing to Moderna's (MRNA) updated COVID-19 vaccine, Spikevax, which targets the LP.8.1 variant of the virus. This positive opinion from the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) allows Moderna to market the updated monovalent shots for COVID prevention in individuals aged six months and older across Europe. This development is expected to create more opportunities for Moderna to expand its commercial footprint in the EU region. Moderna has previously announced plans to establish a commercial presence in additional European countries, including Belgium, Denmark, Norway, the Netherlands, Poland, and Sweden, to support the delivery of mRNA vaccines and therapeutics locally.
In geopolitical news, Brazilian President Luiz Inácio Lula da Silva has voiced strong opposition to U.S. President Donald Trump's threat of a 50% tariff on Brazilian exports. Lula stated that Brazil "will not accept anything imposed on it" and emphasized that Trump was elected to govern the U.S., "not to be the emperor of the world." He reiterated Brazil's commitment to dialogue and negotiation, but not imposition, in its international relations. This comes amidst ongoing trade discussions between the EU and the U.S., with EU officials suggesting a framework trade deal could be reached this weekend, potentially including a 15% baseline tariff on EU goods and a 50% tariff on European steel and aluminum. European Commission President Ursula von der Leyen is scheduled to meet with Trump in Scotland on Sunday to discuss transatlantic trade relations.
On the market front, both the S&P 500 and Nasdaq 100 indices have climbed to new session highs. This upward movement is attributed to a robust earnings season and recent positive developments in international trade, including a "massive" trade deal announced by President Trump with Japan. However, investor sentiment shows some caution despite the new highs, with risks of a potential short-term market top.
Meanwhile, ceasefire negotiations for Gaza, facilitated by Qatar, Egypt, and the United States, have been paused for consultations. While some progress has been reported, significant breakthroughs remain elusive, with talks expected to resume next week. The mediators, including Qatar and Egypt, have reaffirmed their dedication to pursuing a complete ceasefire in Gaza.
In the pharmaceutical sector, U.S. lawmakers have urged the Food and Drug Administration (FDA) to address the proliferation of compounded and fake GLP-1 drugs. This bipartisan concern has led to a rise in shares for companies like Eli Lilly (LLY) and Novo Nordisk (NVO). Eli Lilly's shares notably rose after lawmakers sent the FDA letter, and its American Depositary Receipts (ADRs) also saw an increase. Novo Nordisk's ADRs have risen to a session peak, climbing up to 1.5%. The FDA's recent unanimous recommendation for Eli Lilly's Alzheimer's drug, donanemab, also contributed to the company's stock gains.
In other financial news, the Canadian Dollar has fallen by 0.6% to 1.3725 per U.S. Dollar. The Netherlands now owns a 30.5% stake in ABN Amro, a reduction from its previous 40.5% holding, aligning with a plan unveiled in October 2024. Lastly, Citi has stated that "Bitcoin will go up if more people buy Bitcoin and won't if they don’t," reiterating a fundamental principle of market dynamics for the cryptocurrency.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.