ECONOMY

Europe: Hope for vaccine gives a smile to European markets

The encouraging news for a vaccine against Covid-19 allowed European markets to offer a solid rebound on Wednesday.

Paris gained 2.03%, Frankfurt 1.84%, and London 1.83%. Madrid (+ 1.84%) and Milan (+ 2.02%) were not outdone. In Zurich, the SMI ended with a gain of 1.95%.

“The optimism of the day is linked to the prospect of a health solution, and this is what gives morale to investors,” stressed AFP Franklin Pichard, director of Kipling Finance.

“Yesterday, they were under pressure from reports of contamination and Sino-American diplomatic tensions, but today everything is swept away, and the markets welcome the possibility of a vaccine,” he added.

The American biotech Moderna announced Tuesday that it would enter on July 27, the final phase of its clinical trials for a vaccine against Covid-19, to test the effectiveness of the latter in real conditions.

The study is expected to last until October 27, 2022, but preliminary results are expected to be released well before that date.

This announcement put the continued spread of the pandemic in the background. The city of Tokyo is thus at its highest alert level following an increase in the cases observed, warned its governor on Wednesday. At the same time, several countries, including India, must carry out partial confinements.

“These advances also allow the markets to step over the first results of the 2nd quarter, which are not surprisingly marked by the pandemic, to project themselves into the second part of the year,” analyzed Mr. Pichard.

In this regard, the day reserved a pleasant surprise, which further boosted the markets, with a better than expected publication by the investment bank Goldman Sachs.

“But we are not in an academic market which reasons on the fundamentals, observed Mr. Pichard, we are in a market which is emerging from an exceptional crisis and some days, it is the optimists who prevail, like today, and others are the pessimists. “

“Until we get a clearer picture of the pandemic,” it will continue, he said.

Aeronautics takes off

The debt market, for its part, evolved in dispersed order, with limited variations, on the eve of a meeting of the European Central Bank, during which investors do not anticipate any specific announcements.

This positive trend played to the full for the stocks most affected by the crisis, such as aeronautics.

Airbus jumped 4.63% to 69.22 euros, Safran 6.66% to 95.72 euros, and Air France KLM 6.70% to 4.36 euros.

Accor (+ 6.94% to 24.95 euros) was also at the party.

The automobile was not outdone like Renault (+ 3.76% to 23.46 euros), Daimler (+ 1.88% to 37.69 euros), BMW (+ 1.17% to 58.61 euros) and Volkswagen (+ 2.75% to 141.16 euros).

In London, Burberry suffered (-5.62% to 1,470.00 pence). The British luxury clothing and accessories group saw its sales drop 45% year on year to 257 million pounds in its lagged first quarter, due to containment measures against the pandemic.

Rowan Sinclair

Reporter Rowan Sinclair born and raised in NYC. She has written for Billboard, The Prague Post, and Passport Magazine. In regards to academics, Rowan earned his BBA from NYU. Rowan covers business and economy stories here at The Ticker Times. Tel: 206-332-0220 Location: 1304 6th Ave, Seattle, WA 98104, USA Email: [email protected]

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