European Stocks Climb Higher; Vaccine Exceeds Confidence

On Monday the European stock markets have opened higher as investors respond with optimism over the continued progress towards functional coronavirus vaccines. The German DAX  traded 1% higher, CAC 40 climbed 0.7% and the FTSE 100 rose 0.8%.

On Sunday Moncef Slaoui, head of the U.S. government’s vaccine development effort, announced that the first Covid-19 vaccine doses could be granted to special individuals as early as Dec. 11. This comes after Pfizer, the same day as Moderna announced that it was near to aspiring the same approval after promising news from its final-stage vaccine trial.

Furthermore, on Monday it was announced that he Covid-19 vaccine developed by AstraZeneca in collaboration with the University of Oxford, was up to 90% effective in preventing the Covid-19 virus if patients were given an initial half dose, succeeded by a full dose.

The idea that a vaccine will be out by Christmas has uplifted investors, even though it will without a doubt take some time before production levels and supply chains are able to match the global demand. In the meantime cases all over Europe and U.S. continue to grow.

In a research note, analysts at ING said, “Optimism around vaccine developments continues to buoy sentiment, despite the current lockdowns that we are seeing across Europe, and with the numbers of U.S. Covid-19 cases now passing the 12 million mark.”

Indications of the amount of the damage to the euro-zone economy from the recent restrictions many countries have implemented to stop the surge in Covid-19 cases will be in focus later Monday, in the form of flash November PMI data for the service and manufacturing sectors. The euro-zone compound output index is expected to fall to 45.8 in November from 50.0 in the previous month, with the services sector taking the full force hit.