Equities New York Outlook: rally should continue thanks to vaccination start and deal optimism | 12/14/20

NEW YORK (dpa-AFX) – The expected start of the vaccination against the corona virus in the USA should give New York Wall Street fresh upward impulses on Monday. There are also hopes that the long-promised US aid package against the pandemic will finally be launched. In addition, contrary to previous ultimatums, talks between the EU and Great Britain on a Brexit trade pact are continuing.

Three quarters of an hour before the start of trading, the broker IG estimated the Dow Jones Industrial (Dow Jones 30 Industrial) 0.74 percent up at 30 268 points. The world‘s best-known stock exchange index could thus continue its record run. It was only on Wednesday that he reached the highest level in his history at just under 30,320 points. The market-wide S&P 500 and the technology-heavy NASDAQ 100 could emulate the Dow, because these two had also climbed to new highs in the past week.

“Now the negotiations in Washington and Brussels are about the sausage,” commented analyst Craig Erlam from broker Oanda Europe. And on Wednesday, market participants hoped for fresh stimuli for the economy from the US Federal Reserve in the face of the violent second virus wave.

It is currently expected that a bipartisan bill for an aid package worth 908 billion US dollars will be introduced into Congress this Monday and finally waved through in the USA. The optimists about the Brexit trade pact also continue to see good opportunities for a trade pact between the British and the EU, as talks about a deal are still ongoing.

And now the vaccinations can start, because the US health authority FDA recommended the emergency approval of the corona vaccine from BioNTech and Pfizer at the weekend. The shares of the two reacted inconsistently to this pre-market: The Biontech shares listed on the Nasdaq fell moderately before the start of trading, but had only reached a new record high on Friday. Pfizer shares gained one percent before the IPO.

The papers from CureVac gained a little more than 6 percent before the IPO after the Tübingen Biotech-Company announced the start of its pivotal clinical trial for a corona vaccine. The first results are expected at the end of the first quarter of 2021.

But not only vaccine issues are moving the pharmaceutical industry on this Monday. A billion-dollar takeover is also in focus, as the British drug manufacturer AstraZeneca wants to buy its US competitor Alexion (Alexion Pharmaceuticals) for a total of 39 billion dollars. The Alexion shares jumped pre-trading around 31 percent high. The analysts at Credit Suisse, Wedbush and Baird reacted promptly and downgraded the share from “Outperform” to “Neutral” ./ck/jha/


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