LONDON, Nov 10 — Financial markets were less giddy today, but sizeable gains continued nonetheless for some stocks and oil prices on strong hopes for a coronavirus vaccine.
News from the US pharmaceutical group Pfizer and Germany’s BioNTech about the excellent phase-three results for their candidate vaccine “seems to have been a game changer, even if experts warn that production and distribution may take time,” commented Fawad Razaqzada at ThinkMarkets.
AJ Bell investment director Russ Mould noted meanwhile that “the stock market is all about pricing in what people think might happen, not what’s already happened.”
Pfizer and BioNTech announced Monday that their vaccine candidate was 90 per cent effective in preventing Covid-19.
The scientific community reacted positively, with top US expert Anthony Fauci describing the results as “extraordinary” and World Health Organization boss Tedros Adhanom Ghebreyesus hailing the news as “encouraging”.
But others pointed out that data from the ongoing trial still needed review, including the ages of the participants.
London’s benchmark FTSE 100 index was up 1.5 per cent in afternoon trading, having closed up almost five per cent the previous session.
Gains among individual share prices were led by companies that have been hammered for most of the year by lockdowns, particularly airlines.
Top Asian indices, playing catch up with Pfizer’s news, ended mixed today, with Tokyo up 0.3 per cent, Hong Kong gaining 1.1 per cent and Shanghai closing down 0.4 per cent.
Singapore and Bangkok each soared more than three per cent.
Leisure stocks such as airlines, and shopping centre groups bounded higher, while tech firms that have benefitted from people being kept at home retreated, as did medical equipment makers.
US vote
On Wall Street, the Dow Jones index showed a slight gain of 0.1 per cent as trading got underway and the country recovered from US election drama.
“The clearing of the election fog has permitted underlying market fundamentals to come back into focus and the most recent vaccine news suggests a ‘return to normality’ should be coming sooner rather than later,” said Seema Shah of Principal Global Investors.
“All the chips are starting to line up, and market sentiment may be in the early stages of a burst of positive energy.”
Joe Biden’s win provided a boost to investors looking for less chaos after four years of Donald Trump, and Republican success in holding on to the Senate will limit attempts by Democrats to push through big tax and regulatory changes.
A massive new US stimulus package has not been agreed upon yet by lawmakers, however.
Key figures around 1440 GMT
London — FTSE 100: UP 1.5 per cent at 6,277.98 points
Frankfurt — DAX 30: UP 0.5 per cent at 13,164.81
Paris — CAC 40: UP 1.2 per cent at 5,400.48
EURO STOXX 50: UP 1.0 per cent at 3,441.40
New York — Dow: UP 0.1 per cent at 29,181.30
Tokyo — Nikkei 225: UP 0.3 per cent at 24.905.59 (close)
Hong Kong — Hang Seng: UP 1.1 per cent at 26,301.48 (close)
Shanghai — Composite: DOWN 0.4 per cent at 3,360.15 (close)
Euro/dollar: UP at US$1.1820 from US$1.1814 at 2230 GMT
Pound/dollar: UP at US$1.3245 from US$1.3160
Dollar/yen: UP at 105.33 yen from 105.31 yen
Euro/pound: DOWN at 89.23 pence from 89.92 pence
West Texas Intermediate: UP 1.5 per cent at US$40.90 per barrel
Brent North Sea crude: UP 1.4 per cent at US$43.00 per barrel — AFP
