Vaccines And the Financial Markets

What is the vaccine news?

Let’s first be clear, we are not advocating for or against vaccines, simply reporting on the market effects. So what’s the news? Three separate studies, sponsored by three pharma companies, have announced interim results in the early phase of testing. We won’t go into the science or the specifics but let’s take a look at the current financial health of those companies.

Pfizer

Pharma giant Pfizer and partner BioNtech announced the preliminary findings of their research on the 9th of November, which prompted a nice little bump to PFEs stock price, as can be seen in the chart below.

BioNtech

What a year for the German biotech. Upon announcement of their vaccine results, its stock price hit an all-time high, reaching 112.76 USD. That’s a whopping 295% increase from it’s YTD low (28.55 USD) in mid-March!

Moderna

Last week, US-based Moderna announced similar findings in their vaccine trial, prompting a boost to their stock price. As you can see, it’s had a pretty sweet 2020 so far and can boast an all-time high price (97.61 USD) right now, up an eye-popping 408% this year!

AstraZeneca

On Friday, the Oxford University study (funded by British-Swedish pharma behemoth AstraZeneca), stated that their vaccine “showed signs of producing a strong immune response…” Unlike the other headlines, this didn’t have such a major impact on AZN stock price. The precise details in this announcement were scarce, so perhaps that’s why investors opted for caution.

Good Vibrations?

Big Pharma wasn’t alone in making stock increases, other companies, particularly those that have struggled to cope with lockdowns, e.g. those in the hospitality and airline industries. As you can see in the charts below, investors have taken this early vaccine news very positively.

Expedia

Price on 01.06: 77.01 USD

Marriott

Price on 01.06: 91.35 USD

EasyJet

Price on 01.06: 574.80 GBX

Ryanair

Price on 01.06: 10.62 EUR

What’s on the trading agenda this week?

Unless you’re a USD trader, not much! Here are the main(ly American) events of the week.

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