On Monday, US time, the three major U.S. stock indexes rose and fell mixed. The Dow rose nearly 3%, the S&P 500 rose 1.17%, and the Nasdaq closed down 1.53%. A piece of good news about the new coronavirus vaccine has aroused widespread concern in global capital markets.
Pfizer announced that its vaccine is more than 90% effective, and no adverse reactions have been found
The US pharmaceutical giant Pfizer and the German biotech company BioNTech announced that the Coronavirus vaccine candidate jointly developed by the two parties has made significant progress in the phase 3 clinical trial.
The effectiveness of the vaccine exceeds 90%, and no adverse reactions have been found so far. The CEO of BioNTech stated that since the effectiveness of the first batch of vaccines was previously expected to be between 60% and 70%, “effectiveness exceeding 90% is very remarkable.”
If the vaccine fully meets the safety and effectiveness requirements, Pfizer and BioNTech plan to submit an emergency use authorization to the U.S. Food and Drug Administration in late November.
U.S. stock market is differentiated, cyclical stocks rose sharply, technology stocks generally fell
Following this major positive, the news that the Democratic candidate Biden won the US election was also in line with market expectations. The three major US stock indexes opened higher.
Dow, which accounts for a larger share of traditional industries, rose sharply after the opening, and once exceeded the market. 1500 points. Market risk appetite has improved significantly, and the US stock market has diverged. Cyclical stocks that have been hit harder by the pandemic before, including energy, tourism and leisure, and banking stocks, have surged. Carnival Cruise Line closed up nearly 40% sharply, and United Airlines rose nearly 20%.
In contrast, “home office stocks” generally fell. Video conferencing software provider Zoom plunged 17%, and “e-commerce concept stocks” Amazon plunged 5%. Safe-haven assets, US Treasuries and the U.S. dollar have also been sold off. The Dow and the S&P 500 both experienced profit-taking some time before the close, and their gains narrowed significantly.
Market analysts pointed out that vaccines can help people return to normal lives, but they will not be a panacea for the economy, because the current problems facing major developed economies are structural, and the introduction of vaccines cannot prevent similar economic blockades in the first quarter. And triggered a wave of massive unemployment.
European stocks rose sharply following the good news of vaccines
The three major European stock markets also surged across the board, among which London stocks rose 4.67%, Paris stocks rose 7.57%, and Frankfurt stocks rose 4.94%.
The pan-European Stoxx 600 index jumped nearly 4%, setting its best single-day performance since late March. The news of Biden’s victory in the U.S. election has led European market participants to generally expect that the U.S. may adopt a more stable economic and trade strategy for Europe in the future, and the positive news of Pfizer and BioNTech’s vaccines will boost European stocks to rise sharply.
BioNTech jumped more than 15% in trading in Frankfurt, Germany. In addition, the market is still paying close attention to the negotiation of a trade agreement between the United Kingdom and the European Union. The United Kingdom expressed its willingness to accept a “reasonable” compromise on fishery-related issues on Monday.
Vaccine news improves fuel demand outlook, crude oil prices rise sharply
Crude oil prices rose significantly on Monday. US WTI light crude oil futures rose 8.5% to $40.29 per barrel, and Brent crude oil futures rose 7.48% to $42.40 per barrel.
Market analysis pointed out that major progress in vaccine research and development means that industrial production activities and transportation will be active again, which will greatly improve the prospects for fuel demand.
The cooling of safe-haven demand suppresses gold prices, international gold prices plummeted by nearly 5%
The cooling of market hedging demand caused investors to sell gold. The price of gold fell sharply on Monday. Gold futures for December delivery fell nearly 5%, the largest one-day drop in nearly seven years, at US$1,854.40 per ounce.