markets surge after vaccine announcement

Yesterday the stock markets soared after an announcement was made by developers Pfizer and Biotech about their new vaccine for COVID-19 which offers 90% protection.

The FTSE 100 increased by nearly 5% and Pfizer’s own shares increased by 9%!

“Markets are primarily about sentiment - does tomorrow look better than today - and in that regard there has been a radical and probably permanent sea change.”

The development and expected release of a COVID-19 vaccine, along with the latest US election result, have certainly stirred the market. You could say investors have restored their appetite as travel and hospitality sectors affected significantly by the pandemic saw huge increases in their shares – British Airways 25%, Easy Jet 34%, Rolls Royce 45%, Compass Group 21%, Royal Caribbean, Cruises 29%.

In contrast, the market shares of businesses Zoom, Peloton, Just Eat and a number of others that benefitted during the pandemic fell.

It’s important to remember although the market appears optimistic, there are still many unanswered questions about the new vaccine and when it will be released.  Considering this, the market “could fade” before it recovers hereafter.

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