Moderna vaccine news sees FTSE surge and value stock recovery continues

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FTSE was one of Monday’s biggest index winners, and announced that Moderna (NASDAQ:MRNA) has put the vaccine candidate into an effectiveness of 94.5%, led by a surge in stocks previously hit by Covid.

Logistics issues remain a continuing concern for the future. However, the Moderna vaccine does not require the same extreme cold storage as Pfizer’s counterparts. The UK successfully placed 5 million orders on the day the results were announced, bringing total vaccine units to 35 million. Even if these facts are true, mass rollout remains a challenge. As Kingswood CIO said, Rupert Thompson:

“So, mass vaccinations look unlikely before next summer. There is also the added complexity that 80% of the population is likely to be willing to be vaccinated in the UK, but less than 60% in the US.”

Similarly, infections have been featured in the US, with the average daily infections rising to over 25,000 in the UK since exceeding 22,000. With Lockdown Part 2 in full swing in European countries, it appears to be on the card that the double-dip recession, which caused economic activity to stifle in the fourth quarter.

Despite medium-term risk factors, FTSE chose to chase the good news that rose 1.66% on Monday as trading closed. The index, which has a maximum of 6,421 points, has reached its highest level since the beginning of June.

Already priced for the detrimental impact of the second wave of the week leading up to the US election, global equity sticks to short-term excitement and long-term hopes, recreating trends posted last Monday. Thompson adds: “If the sun-lit highlands appear on the horizon, investors are usually ready to look into short-term troubles.”

Outside of FTSE, CAC rose 1.7%, DAX rose 0.5%, and Dow Jones rose 1.3%. In particular, there are two trends that we are looking at. Leads are much brighter in stocks than bonds, and with growth of 7% last week, FTSE will remain a prominent spot for stock recovery in the coming months. In the latter, IG Senior Market Analyst Joshua Mahony said:

“Once again, it’s worth it for the profits of the FTSE 100. With names like Cineworld, IAG and Rolls-Royce all pushed up sharply, we feel that Pfizer’s announcement last week is boosting traders’ confidence to shift to some of the most challenging stocks.”

“As more than a quarter of the FTSE 100 comes from energy and financial inventory, the outlook for a vaccine-driven expansionary recovery highlights the potential outperformance of the UK market.”

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