Vaccines And the Financial Markets
Welcome back to another week of trading! In this week’s preview, we’ll take a closer look at the impact that vaccine news has on the markets. Following that, we’ll give you our usual rundown of the most important events for your trading radar this week.
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.
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.
The stock price reached 37.14 USD that day, its highest point for four months, very nearly eclipsing its 2020 high. It’s a far cry from that super YTD low of 26.99 USD back in March.
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!
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!
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.
Generally speaking, AstraZeneca is having a positive end to the year, with its stock price up 9% from where it was at the beginning of January.
It’s worth keeping your eyes on these stocks as more information continues to flow and world governments seek to secure access to the vaccines. What are your thoughts on the current influx of vaccines? You can tweet us @_contentworks
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.
Price on 01.06: 77.01 USD
Price on 20.11: 119.90 USD
% difference: +55.7%
EXPE, 6 months
Price on 01.06: 91.35 USD
Price on 20.11: 119.28 USD
% difference: +30.6%
MAR, 6 months
Price on 01.06: 574.80 GBX
Price on 20.11: 732.80 GBX
% difference: +27.5%
EZJ, 6 months
Price on 01.06: 10.62 EUR
Price on 20.11: 15.55 EUR
% difference: +46.4%
RYA, 6 months
It’s all very positive, but let’s see what happens over the next couple of months. Don’t take your eyes off those headlines for a second!
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.
Monday 23rd November
● The US will announce its November Markit Manufacturing PMI Flash (USD)
Tuesday 24th November
No major events planned
Wednesday 25th November
● The US will reveal its second estimate for GDP Growth Rate QoQ (USD)
● It will also reveal its PCE Price Index YoY for October (USD)
● And the FOMC will release their meeting minutes (USD)
Thursday 26th November
● The ECB is due to reveal its Monetary Policy Meeting Accounts (EUR)
Friday 27th November
No major events planned
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The Contentworks team