Today Pfizer has hit the headlines announcing their coronavirus vaccine with BioNTech giving hope to people across the world. The drug company Pfizer’s shares jumped 14% after the announcement of their vaccine, a true milestone in scientific history. The FTSE 100 followed suit, soaring by 5.5% immediately after the vaccine announcement, including shares in Informa soaring by 44% and International Airlines Group by 39%.
The race for a vaccine among pharma giants is over. Pfizer’s vaccine, said to be 90% effective, has been tested on 43,500 people so far across six countries and proven safe. The company plans to apply for emergency approval to use the vaccine before the end of November means the end of the pandemic is in sight!
Stock markets have already been rallying after Joe Biden was confirmed president. The clear end to the election buoyed markets, but traders could never have predicted today’s charts. This morning’s announcement of an effective vaccine has produced unprecedented stats in the stock markets with economic recovery in the pipe-lines has set rises across sectors.
All the sectors hardest hit by coronavirus have seen record-breaking surges in share price. Travel, hospitality and events are rejoicing with the news that the pandemic will hopefully come to a close by 2021 and they can resume business. Airlines have seen the biggest gains with aerospace engineers Rolls-Royce rising 45%, British Airways owner IAG soaring 35% and EasyJet increasing 31%. The hospitality sector has also seen huge gains, catering company the Compass Group’s shares soaring 40%.
We will see a sharp reverse in the thriving market of online shopping sparked by the recent wave of lockdowns as the public holds out for shopping in-store. The vaccine announcement has already caused Ocado shares to drop by 9& and Just Eat by 7% with many other companies that have made profit during the pandemic set to make a U-turn.
It is very early days in terms of the practicalities of cost, manufacture and distribution of the vaccine, which likely means the vaccine will only reach the public in the early months of 2021. Although there is a wait before we will see results from the vaccine, 2021 is looking like a much brighter and prosperous year.
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