November 27, 2020

Stocks hit by investor caution as Covid vaccine excitement fades – business live – The Guardian

https://www.theguardian.com/business/live/2020/nov/13/stock-market-sink-sterling-covid-coronavirus-vaccine-excitement-fades-ftse-business-live

Equity markets started off in the red this morning but they have been driving higher recently and most European indices are in positive territory.

The rebound in sentiment seems a bit strange seeing as the number of new coronavirus cases in the UK, Germany and Italy are worrying. France is committed to maintaining its lockdown in the near term and so is the UK.

The health crisis is becoming more of a serious issue in the US too as cities like New York and Chicago could be in for stricter restrictions. The pandemic might not have the same negative impact on equities that it used to, seeing as there has been great progress made with respect to the drug that Pfizer and BioNTech are developing.

At the same time, dealers need to be mindful that the potential Covid-19 vaccine might not get approval, and even if it does, the roll out process will probably be timely.