Biotech investors stay on sidelines as US election looms
Main U.S. stock indexes up early
Technology leads S&P 500 sector gains; real estate down the most
Euro STOXX 600 index up ~0.9%; ECB cuts rates 25 bps
Dollar, gold, crude gain; bitcoin dips
U.S. 10-Year Treasury yield rises to ~4.09%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
BIOTECH INVESTORS STAY ON SIDELINES AS US ELECTION LOOMS
Investors in the biotech market appear to be waitingwith bated breath on a U.S.election outcome before taking concentrated positions or unwinding defensive hedges, according to a BMO Capital Markets note.
With Q3 earnings for most biotech companies only weeks away, it feels like the calm before the storm.
The Nasdaq biotech index .NBI has risen about 11% for the year to date, while the broader Nasdaq Composite .IXIC is up about 22.3% since Dec. 31, as the funding-reliant sector came under pressure from high interest rates.
While biotech funds continue to show outflows in 2024, meaningful rate cuts could serve as a catalyst for more investments, BMO analysts wrote in the note.
For now, there is lesser clarity on the potential impact of how rate cuts would lead to outsized investment into the biotech sector. The analysts expect to get better clarity on this over the coming months.
In the near term, a victory by U.S. Republican presidential candidate Donald Trump would be perceived as marginally better for the sector, the analysts said.
However, BMO says biotech companies and drugmakers may be increasingly moving out of the crosshairs of lawmakers after recent testimony from Novo Nordisk's NOVO.N NOVOb.CO chief executive.
In late September, Novo CEO Lars Jorgensen faced U.S. Congress scrutiny over weight-loss drug pricing.
"Following this hearing, we have gotten the sense that Congress is meaningfully refocusing on PBM reform as the next congressional target for healthcare."
Going into Q3 earnings for the biotech companies, obesity remains a key theme for the sector in 2024 and beyond, with companies like Merck MRK.N eager to enter the obesity drug market, already dominated by Novo Nordisk NOVOb.CO and Eli Lilly LLY.N.
(Sruthi Narasimha Chari and Manas Mishra)
*****
FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:
BROADER MARKET SPREADS ITS WINGS- CLICK HERE
BIG OIL CASH RETURN RESILIENCE IN SPOTLIGHT FOR 2025 - BOFA - CLICK HERE
ROCHE AND NOVARTIS TOPPLE NESTLE IN TIGHT RACE - CLICK HERE
SOVEREIGN DEBT DEFAULT LIST HAS SHRUNK THIS YEAR - TELLIMER - CLICK HERE
EARNINGS LIFT THE STOXX, BANKS BUOYANT - CLICK HERE
EUROPE BEFORE THE BELL: TSMC BOOST, NESTLE MISS - CLICK HERE
ECB TO CUT, MARKETS WANT CLUES ON NEXT MOVE CLICK HERE
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
