Pfizer Covid-19 vaccine triggers stock market surge
The FTSE 100 has rocketed to a three-month high following hot news from Pfizer on its vaccine programme.
9th November 2020 13:14
by Richard Hunter from interactive investor
The FTSE 100 has rocketed to a three-month high following hot news from Pfizer on its vaccine programme.
The announcement from drug giant Pfizer (NYSE:PFE) that it's Covid-19 vaccine is "90% effective" against the virus is not yet a panacea, but adds to positive investor sentiment, which had already been buoyed by Joe Biden's victory in the US election, and which has sent markets to strongly positive levels.
Beneficiaries of the rally are widespread, particularly among the more beaten down sectors. The airlines and airline-related stocks are on a tear, rising in some cases by over 25%, while housebuilders, banks and retailers are all in the boat currently being lifted by a rising tide.
On the flip side, interestingly, some of the stocks which have seen the benefit of lockdown, and could therefore have this rug pulled from underneath them in the event of a return to normality, have seen a slight markdown. The likes of Just Eat Takeaway.com (LSE:JET), Kingfisher (LSE:KGF) and Flutter Entertainment (LSE:FLTR) have all seen declines in anticipation of slowing sales should the widespread easing of lockdowns come into play.
It is still early days, and the practicalities point to any meaningful distribution not being available until the first few months of next year. Even so, the news is without question a positive development and has certainly captured the imagination of investors.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.