Pfizer and BionTech have announced that the coronavirus vaccine is effective in 90% testing. This has resulted in a surge in global stocks.
The pharmaceutical company said the vaccine “followed that the initial preliminary efficacy analysis showed that over 90% of the time it was effective in preventing COVID-19 in participants without evidence of previous SARS-COV-2 infection.”
The FTSE 100 rose sharply from 5.5% to 6,242 points. Investors are reassuring that the economy will soon return to normal, which is the highest level since August.
The Blue Chip Index has already begun positively in the week after Joe Biden won the presidential election. It continued to soar after the drug company made the announcement at noon.
Craig Erlam, senior market analyst at Oanda Europe, commented on how vaccine news has expanded its global market.
“As Covid is wreaking havoc in Europe and the US once again, Pfizer’s announcement provided the lift we all have been craving. The company announced that Pfizer’s BionTech Experimental vaccine is more than 90% effective in preventing COVID-19 and is sending out the Skyrockets of the future.
“This is the news we’ve all been waiting for. The company plans to use emergency use permits after reaching a safety milestone in late November, and the interim analysis has not identified any serious safety concerns. Pfizer will be able to produce 50 million doses in 2020.
“We have been waiting for this moment for a long time, but we hope that others will soon join Pfizer and Biontec, killing this vicious circle and killing businesses, causing a rise in unemployment and increasing debt around the world.
“This is the light at the end of the tunnel moment and you just have to see the market reaction. One of the incredible relief,” he added.
In the FTSE 100, International Airlines Group saw its stock rise 39%, Rolls-Royce surged 33%, and event company Informa surged 44%.
“We’re looking forward to seeing you in the process of exploring our multi-asset investment platform,” said Adam Vettese, analyst at Etoro, a multi-asset investment platform.
“The vaccine news injected optimism, especially in travel inventory. The sector has been hit hardest by Covid-19 restrictions, with EasyJet and IAG moving strongly behind the announcement. Oil stocks have also jumped up and down as signs of a recovery in the travel sector stimulate demand.
“But while this is clearly a positive progression, there is still a way to go. Pfizer can submit the vaccine for emergency use once the two months of data is collected. All eyes will be in the third week of November and wait for the numbers to see if they can approve the vaccine.”
While it’s surged in many travel and event companies, not all stocks are growing. Zoom’s stock crashed 12% to $460 on Monday after seeing more than $560 rise in stocks from $70 in February over the past nine months during the pandemic.
Food and Okado were also recipients of the pandemic, with stocks down 11% and 7% respectively.
Wall Street stocks also rose sharply at the opening. S&P 500 futures rose 3.78%, while Dow contracts rose 4.69%
In Europe, Germany’s DAX index has increased by 5.8%, while France’s CAC has increased by about 7%.
“We’re looking forward to seeing you in the future,” said Andrea Cicione, Strategy Director at TS Lombard. “This is very important (news), because it examines the market’s view that the economy and revenues can receive the growth pathways they had before the (Covid-19) crisis hit.”
Oil prices also skyrocketed 8%, at $42.64 per barrel.
