Vaccine hopes Lead to Global Market Rocketing.
Stock markets have rocketed on hopes of a potential breakthrough in the search for a vaccine against Covid-19.
Markets are primarily about sentiment – does tomorrow look better than today –
and in that regard there has been a radical and probably permanent sea change.
With more vaccines in development that optimism could grow.
What this result demonstrates is that while the virus is not yet beaten it is beatable.
That ray of light has lit up stock markets around the world.
some people in the markets are already looking for something else to worry about.
If we are returning to a semblance of normality in the months ahead, do the US authorities really need a stimulus package as big as the $3tn to $4tn being discussed by the Biden team?
But for now, the markets, like the rest of us, are enjoying the warm glow of the first significant sentiment boost since the virus started ravaging the world economy.
Shares in UK travel firms – which have been hit hard by the pandemic – saw the biggest rises, with British Airways owner IAG soaring 35%.
Elsewhere in the sector, EasyJet shares rose 31% while aero-engine maker Rolls-Royce surged 45%.
Another sector of the economy that has been hit hard by coronavirus is hospitality, and catering firm Compass Group saw its shares rise more than 20%.
US-listed Royal Caribbean cruises meanwhile were up 30%, while travel booking firm Expedia jumped 22% and Disney climbed 12%.