Market Analysis – Investors welcome vaccine’s fast-track approval
European equity markets are trading slightly lower this morning, with the German index down 0.20 per cent on the day.
The rising Euro is creating headwinds for EU stocks, and even the rally on Wall Street has lost some of its momentum. Nevertheless, market sentiment remains positive as investors focus on the progress made in getting the COVID-19 pandemic under control.
The UK is the first country worldwide to approve the BioNTech-Pfizer vaccine, and the US and EU are likely to follow suit in the near-term.
Investors reacted positively to the fact that the COVID-19 vaccines are on fast track to approval.
The lockdown across Europe is likely to persist for some time. Germany only recently announced an extension of its restrictions. However, the vaccines are accelerating the return to normality, and investors are optimistic that the pandemic could be under control soon.
Meanwhile, currency traders are keeping a close eye on the Euro. The common currency has pushed through the psychologically important $1.20 level and is likely to extend gains in the near-term.
While the European Central Bank (ECB) is likely to take aim at the strong Euro, the verbal intervention will not be sufficient to slow the rally down.
Market Analysis – Investors welcome vaccine’s fast-track approval
