Summary
- US equity indices poised to open higher on optimistic trade comments
- S&P 500 (US500) bounces off the lower limit of the trading range
- US biotechs make big moves in the pre-market trading on major drug patent deal
Global stock markets took a hit on Friday when China announced new tariffs on US goods. United States announced retaliation after markets close. However, the US indices are set to open higher on Monday as a range of optimistic comments surfaced over the weekend and earlier today. US biotechs can be found among the biggest pre-market movers following announcement of a multi-billion dollar rights deal.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
S&P 500 (US500) index managed to halt downward move ahead of the support zone ranging above the 2800 pts handle. With today’s rebound the chance of maintaining current 2800-2960 pts trading range increases. In case no news concerning trade war surface in the days to come, a move towards the upper limit of the range may be on the cards now. Source: xStation5
Amgen to buy worldwide rights for Otezla drug from Celgene
Amgen (AMGN.US), Celgene (CELG.US) and Bristol-Myers Squibb (BMY.US), the US biotech companies, are making moves in the pre-market trading. Amgen announced that it will buy worldwide rights to Otezla drug from Celgene. The deal is valued at $13.4 billion and is a part of divestiture plan pursued by Celgene (CELG.US) and Bristol-Myers Squibb (BMY.US). The latter two companies announced a merger at the beginning of the year and try to get regulatory green light by selling off some assets. Completion of the Otezla sale will only go through in case the approval for the merger is granted. Sales of Otezla drug reached $1.76 billion in 4 quarters ended on 30 June 2019. Celgene and Bristol are trading higher while Amgen moved lower on the news.
Amgen surged at the beginning of the month and broke above the 200-session moving average as well as the downward sloping trendline. An upward move was halted by the zone marked with highs from September and December 2018. The stock is poised to start today’s trading lower and $195 handle may be the level to watch. Source: xStation5
Tesla to hasten price increases in China
According to the Reuters report, Tesla (TSLA.US) will raise prices for its cars on Friday, somewhat quicker than previously planned. The price increase is partially driven by weakening of yuan that harms the company's sales as Tesla is importing cars it sells in China. Moreover, the very same report hints that this may not be the end of trade war related price increases. The US electric vehicle manufacturer is also said to consider another price hike in December in case tariffs on US cars are indeed imposed. However, one should keep in mind that this news was provided to Reuters by unnamed insider and has not been confirmed by the company yet.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
