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AstraZeneca Vaccine Disappointment And Brexit Deal Hopes Leave FTSE Flat

Published 24/11/2020, 05:53
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AstraZeneca/Oxford vaccine update failed to recreate the kinds of gains produced by the Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) preparations.

Though up to 90% effective dependent on how it is administered, the main takeaway for investors was the headline that, on average, the vaccine has an efficacy rate of 70.4%.

If that news had been released before the Pfizer/BioNTech and Moderna statements, investors likely would’ve jumped for joy; in comparison to the 90% and 95% efficacy reported by those other trials, however, the Oxford vaccine can’t help but seem a tad disappointing.

AstraZeneca investors certainly felt so, driving the stock 3.8% lower, back below £80 a share. That in turn contributed to the FTSE’s flat performance, the index losing the morning’s gains in the face of the Astra fall, continued Brexit deal strength from sterling – the currency was up 0.4% against the dollar and 0.7% against the euro – and anxiety about the lockdown measures Boris Johnson is set to announce this evening.

Elsewhere the mood was more upbeat. The Dow Jones added 230 points after the bell, the US index once again closing in on 29,500 despite Donald Trump’s continued refusal to concede and an alarming covid-19 situation that will likely see daily cases cross 200,000 this week.

As for Europe, the DAX and CAC were up 0.5% and 0.3% respectively. The latter pulled back from its morning peak after a pair of terrible flash PMIs, including a services reading of just 38.0.

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