stock markets

Moderna vaccine news sends stocks higher, Dow nears 30,000

Agence France-Presse, Agence France-Presse
Moderna vaccine news sends stocks higher, Dow nears 30,000

WALL STREET. A person walks past the New York Stock Exchange at Wall Street in New York City on November 16, 2020.

Photo by Angela Weiss/AFP

The positive news about Moderna allows investors to look past rising coronavirus cases that are stretching hospital infrastructure in some parts of the United States

Major stock markets surged higher on Monday, November 16 – with the Dow closing in on 30,000 points – after an announcement a second COVID-19 vaccine is proving effective in trials, sparking fresh hope of a return to normality.

Moderna said its experimental COVID-19 vaccine was shown to be 94.5% effective according to early trial results.

That followed an announcement last week by Pfizer and BioNTech that their vaccine was 90% effective.

“US stocks raced higher on Moderna’s upbeat vaccine news, which along with Pfizer’s vaccine raise expectations for a return to pre-pandemic life before next winter,” said market analyst Edward Moya at OANDA currency trading platform.

The positive news about Moderna allowed investors to look past rising coronavirus cases that are stretching hospital infrastructure in some parts of the United States.

The US recorded 133,045 new COVID-19 cases on Monday and 616 deaths, according to Johns Hopkins data.

The Dow finished at a fresh record, easily topping its prior high mark and ending with a gain of 1.6% at 29,950.44.

The S&P 500 also ended at a new peak, while the Nasdaq finished solidly higher.

European equities accelerated gains on the news. Both London and Paris climbed 1.7% while Frankfurt ended the day 0.7% higher.

‘End of nightmare?’

“Just as their initial dose of vaccine bullishness appeared to be waning, the markets got another injection of good news this Monday,” Spreadex analyst Connor Campbell told Agence France-Presse.

“As with Pfizer, there is still a way to go before Moderna’s vaccine is approved. However, investors were only thinking about the long-term, flashing forward to the end of this nightmare.”

Oil prices in London soared by more than 3% as the vaccine news stoked hopes of a recovery in energy demand, just as many countries are tightening restrictions to slow the spread of the coronavirus.

In addition, traders cheered the signing of the world’s biggest free trade deal by 15 Asia-Pacific countries – including Japan and China – that covers about a third of the world’s gross domestic product. (READ: EXPLAINER: What RCEP means for Philippines)

Tokyo jumped more than 2% on news that the world’s 3rd biggest economy had surged out of recession in the 3rd quarter, growing by a forecast-beating 5% owing to a pickup in domestic demand and exports.

“The recent growth points towards the fact that Asia is now well and truly on the path to recovery, with China in particular, showing great resilience as Beijing revealed its factory output had risen faster than expected,” said Sun Global Investments head Mihir Kapadia.

Key figures around 10 pm GMT
  • New York – Dow: UP 1.6% at 29,950.44 (close)
  • New York – S&P 500: UP 1.2% at 3,626.91 (close)
  • New York – Nasdaq: UP 0.8% at 11,924.13 (close)
  • London – FTSE 100: UP 1.7% at 6,421.29 (close)
  • Frankfurt – DAX 30: UP 0.5% at 13,138.61 (close) 
  • Paris – CAC 40: UP 1.7% at 5,471.48 (close)
  • EURO STOXX 50: UP 1% at 3,466.21 (close)
  • Tokyo – Nikkei 225: UP 2.1% at 25,906.93 (close)
  • Hong Kong – Hang Seng: UP 0.9% at 26,381.67 (close)
  • Shanghai – Composite: UP 1.1% at 3,346.97 (close)
  • Euro/dollar: UP at $1.1854 from $1.1834 at 10 pm GMT
  • Pound/dollar: UP at $1.3198 from $1.3189
  • Dollar/yen: DOWN at 104.56 yen from 104.63 yen
  • Euro/pound: UP at 89.82 pence from 89.73 pence
  • West Texas Intermediate: UP 3% at $41.34 per barrel
  • Brent North Sea crude: UP 2.4% at $43.82 per barrel

– Rappler.com

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