Stocks and oil surge on Pfizer vaccine breakthrough
11 November, 2020
Global stocks surged on news that a vaccine being trialled by Pfizer for Covid-19 proved a lot more than 90 % effective against the virus.
Pfizer shares were up 9.6 per cent at 8.31pm UAE time following the firm said an interim analysis from a phase 3 trial of a vaccine it really is developing with BioNTech was found to have a 90 % efficacy rate within a week of another dose being administered.
The S&P 500 index was up 2.9 %, the Dow Jones index rose 3.9 % and the Nasdaq 100 climbed 0.7 %.
Oil prices also soared, with Brent crude trading 7.3 % higher at $42.56 per barrel and US benchmark West Texas Intermediate up 8.1 per cent.
The Eurostoxx 50 index was up 6.4 %, Germany's DAX climbed 5.2 % and the FTSE 100 rose 4.9 %.
"Pfizer’s vaccine news brings us one step nearer to normal living," said Naeem Aslam, chief markets analyst at Avatrade.
"There is absolutely no doubt that we are receiving more and more very good news as we approach the end of this year."
Shares had already closed higher in Asia and have been climbing in Europe after Joe Biden was declared the 46th president of the US over the weekend.
“As the US election overhang clears, market dispersion rises as an interval of risk-friendly everyday looks to check out the post-election frenzy,” Stephen Innes, chief global market strategist at Axi, said.
“Monetary policy can help extend post-election rallies in risk sentiment, creating a bridge to a post-vaccine environment.”
Although President Donald Trump continues to won't concede election results and vows to explore legal options, markets are taking cues from the president-elect, who has begun his transition efforts.
There exists a growing sense the election will never be contested and in his victory speech Mr Biden promised swift and concerted efforts to regulate the pandemic and reboot the economy. Odds indicate a divided government, but more fiscal support for struggling businesses and individuals is likely.
In Asia, The Nikkei 225 closed up 2.12 %, the Hang Seng was up 1.1 per cent and the Shanghai index finished the session 1.96 per cent higher.
“Across Asia, the picture is much the same - a sea of green,” Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, said.
“I expect the Biden afterglow to withstand any tweets from the White House or threats of legal challenges. That needs to be the theme of the whole week.”
Mr Biden is perceived in Asia to be more likely to “reengage in international trade”, a positive for Asian economies, he said.
“There can also be some dialling down of the geopolitical tensions in your community,” he added.
The improved outlook led to a decline in the price tag on safe havens, with spot gold prices dropping 5 per cent to $1,854.07 per oz. Gold futures also traded 5.1 per cent lower.
Source: www.thenationalnews.com