Moderna states that its coronavirus vaccine is 94.5% effective. Investors buy stocks in hope that life will get back to normal sometime in 2021.
Moderna Reports That Its COVID-19 Vaccine Is 94.5% Effective
S&P 500 futures got another boost from vaccine news as Moderna reported that its coronavirus vaccine showed 94.5% efficiency in preventing the disease. Not surprisingly, Moderna’s shares are gaining about 15% in premarket trading.
Previously, Pfizer and BioNTech reported that their vaccine was more than 90% effective. Russia has also claimed that its COVID-19 vaccine called Sputnik V had an efficiency of more than 90%.
Various vaccines are showing great efficiency in fighting the virus which increases chances for a return to normal life sometime in 2021. The vaccine optimism helps investors to shrug off worries about the current situation on the coronavirus front and focus on post-pandemic future.
Asian Economies Continue To Rebound
Markets were gaining ground even before Moderna provided an update on its vaccine as investors cheered the recent economic reports from China and Japan.
China reported that its Industrial Production grew by 6.9% year-over-year in October while analysts expected growth of 6.5%. Meanwhile, Retail Sales grew by 4.3% as consumer activity continued to rebound.
China’s Unemployment Rate declined from 5.4% in September to 5.3% in October. Back in January 2020, China’s Unemployment Rate was also 5.3% so the country’s job market returned to its pre-pandemic state.
Meanwhile, Japan’s third-quarter GDP grew by 5% quarter-over-quarter compared to analyst consensus which called for growth of 4.4%.
The continued rebound of Asian economies boosts investors’ mood and provides support to riskier assets at a time when Europe and U.S. struggle to contain the pandemic.
Oil Gains Ground, Gold And Silver Fall On Vaccine News
Oil gained strong upside momentum after the release of vaccine news and made an attempt to settle above the $42 level. Oil remains highly sensitive to developments on the coronavirus front, and any positive news about COVID-19 vaccines provide significant support to oil.
At the same time, gold and silver found themselves under pressure as investors’ risk appetite increased while demand for safe haven assets decreased.
As a result, today’s trading session is set to be a good one for energy-related stocks while precious metals miners will likely find themselves under pressure.