Biotech Stocks: Which Stocks Emerged as Winners?
China's GDP Report Depressed the US and UK Stock Markets
Healthcare sector gains
The biotech stock, Adaptimmune Therapeutics (ADAP) rose 12.6% on Monday, October 19 after Cowen and Company reissued an “outperform” rating on the stock. The company is focused on cancer treatments and immunotherapy products.
Stocks at the top
The stocks at the top of the iShares MSCI United Kingdom (EWU) on October 19 were Shire (SHP), Compass Group (CPG), and Carnival (CCL). These stocks rose 2.6%, 1.7%, and 1.6%, respectively, on the day.
Shire (SHP) received a request regarding an additional clinical study for its new drug, Lifitegrast, by the FDA (US Food and Drug Administration). The new drug is meant to treat dry eye disease symptoms.
Stocks at the bottom
The stocks at the bottom of EWU were Anglo American (AAL), Tullow Oil (TLW), and Glencore (GLEN). These stocks yielded -7.4%, -6.1%, and -5.2%, respectively, on Monday, October 19. Glencore and Anglo American are mining stocks. Tullow Oil is an energy stock.
On the other hand, the finance sector also suffered losses on October 19. Financial companies’ stocks like Prudential (PUK), Royal Bank of Scotland (RBS), Aviva (AV), and HSBC Holdings (HSBC) fell by 0.49%, 1.2%, 0.07%, and 0.62%, respectively, on the day.
ECB’s meeting
Investors are waiting for more stimulus measures from ECB (European Central Bank) ahead of its October meeting. The cheaper commodity and energy prices and a fall in economic activity, despite the stimulus program at work, generated the deflation threat in Eurozone. As a result, to ward off the probable deflation from the region, investors are expecting the ECB’s president, Mario Draghi, to inject a fresh stimulus program in the region. The October ECB meeting is highly anticipated. The ECB will decide on future actions regarding QE (quantitative easing) to lift the economy in the Eurozone.
Read What a Fed Delay Means for the ECB and Bank of Japan? for a detailed analysis on monetary policies.
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