Markets Soar On News Of Pfizer Vaccine

Global markets soared on Monday as news of a successful coronavirus vaccine trial bolstered investor confidence, sending New York to record highs.

Already up strongly on news that Joe Biden had won the US presidential election, markets massively accelerated gains after Pfizer and its German partner BioNTech said a Phase 3 trial showed that their vaccine was 90 percent effective in preventing Covid-19 infections.

"Pfizer's Covid-19 vaccine news has acted like a shot of adrenaline for the markets, triggering one of the biggest single day movements in global equities for a long time," said Russ Mould, investment director at AJ Bell.

"A successful vaccine has greater significance than Joe Biden winning the US election as it would effectively pave the way to restarting economic growth globally."

In New York, the benchmark DJIA shot more than five percent higher to a peak of 29,933, beating the record set February 12 of 29,551.

In late morning trading it wsa 3.9 percent higher.

Pfizer shares jumped more than nine percent as analysts hailed the vaccine news as a breakthrough after months of mounting cases and deaths, especially in the US and Europe.

Gains of four and five percent were made across the board but some of the sectors hit worst by the pandemic -- airlines and hospitality -- did even better.

Shares in British Airways parent IAG and Air France-KLM both soared more than 25 percent and Lufthansa climbed 20 percent.

Conversely some of the companies which have benefited massively as suppliers of goods and services sought by virus lockdown citizens around the world fell back, with Amazon losing some five percent before starting to claw back losses.

"Stock markets surged on some extremely positive news from Pfizer and BioNTech," said Neil Wilson, chief market analyst at Markets.com.

"Coming on top of the wave of relief from Joe Biden's victory, it's proving a spicy cocktail for stocks."

Oil prices were also up sharply, with New York crude jumping 8.8 percent and Brent North Sea oil up 7.7 percent.

"The energy market is very sensitive to the perception of the health of the economy so the progress being made with respect to a possible vaccine has sparked a huge wave of demand for oil," said market analyst David Madden at CMC Markets UK.

Stock markets began rallying early on Monday as Biden's election win was taken to mean less uncertainty and providing hope that the US would finally agree on a stimulus package to prop up the ailing economy.

While Democrat Biden has secured enough votes for victory, his Republican rival Donald Trump has refused to accept defeat, with legal challenges and recounts looming.

In London, the FTSE 100 closed up 4.7 percent at 6,186, and in Frankfurt, the DAX 30 closed 4.9 percent higher at 13,095. (AFP)