European Stocks hovered at 8-month highs, on optimism around signs of a breakthrough of Pfizer’s COVID-19 vaccine. Although concerns on the negative disruption caused by the COVID-19 pandemic weighed heavily on global investors.
- On a W/W performance review, the Spanish Stock index, IBEX, up 13.13%.
- French Stock in CAC 40 up 12.59% outmatched its American rivals Dow Jones 30 up 6.11% and S&P 500 up by 5.38%
READ: Industrial Stocks fade off gains from GTBank, First Bank
What this means: European equity markets are consolidating following yesterday´s impressive rally. The US presidential election and the COVID-19 pandemic were the two major topics that kept investors on the edge during the past few weeks. Now, they can finally breathe a sigh of relief.
European stocks are all fired up on the bias that investors cheer the possibility of a peaceful global trade regime under U.S. President-elect, Joe Biden. However, surging COVID-19 cases have threatened a fragile economic recovery at home.
READ: Chelsea Football Club owner sells gold mining stake for $1.4 billion
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in an explanatory note to Nairametrics, provided key insights on macros boosting European Stocks rally.
“US and European equities soared overnight amid a most frothy global risk rally, but gold was down nearly 5% on the back of far better than expected results by the vaccine candidate developed by Pfizer and BioNTech.
READ: EU to buy $478 million WHO COVID-19 vaccine for low and middle income countries
“Those results showed a more than 90% effectiveness rate among 94 subjects infected with COVID-19 and who had at least one symptom.
“Pfizer indicated it remains on target to seek sale permission from regulators by the end of this month. Depending on how long regulators take to review it, the distribution could then start within months.”
READ: Why Warren Buffett is making less money now
Bottom Line
There is a lot for Stock traders to take in right now, not to mention that the blue party’s electoral victory at the U.S presidential election has ushered in a perceived transformation in geopolitical risk, as investors debate how the world might be a more peaceful place during the next four years.
