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European Stocks Soar; Vaccine Rollout Prompts Optimism

Stock MarketsJan 04, 2021 03:26AM ET
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© Reuters.

By Peter Nurse 

Investing.com - European stock markets pushed strongly higher Monday, with investors banking on the rollout of vaccines to help stimulate economic growth in a region hit hard by the Covid-19 virus.

At 3:30 AM ET (0830 GMT), the DAX in Germany traded 0.5% higher, the CAC 40 in France rose 1% and the U.K.'s FTSE index climbed 1.7%. 

Britain became Monday the first country to roll out the Covid-19 vaccine developed by AstraZeneca (NASDAQ:AZN) and Oxford University, a cheaper and more easily stored alternative to the vaccine developed by Pfizer (NYSE:PFE) and BioNTech  (NASDAQ:BNTX), which is already in use. 

This is another step forward in the global response to the pandemic, hopefully shortening the time before some form of herd immunity can be achieved and economies across the globe can reopen.

At the same time, British Prime Minister Boris Johnson warned that he may have to impose tighter restrictions as Covid-19 cases soar in his country, while Germany is likely to extend its national restrictions beyond Jan. 10 to curb infection rates that are still running high.

It’s not only in Europe where coronavirus problems exist. Cases remain very high in the U.S., and in Japan Prime Minister Yoshihide Suga confirmed the government was considering a state of emergency for Tokyo and three surrounding prefectures.

Still, there was some good news Monday, as the Caixin/Markit manufacturing Purchasing Managers’ Index for December came in at 53.0. Although below November’s 54.9, this reading indicated the Chinese manufacturing sector is still expanding.

The equivalent Spanish December manufacturing PMI release came in at 51.0, above November’s 49.8, and a number of European countries are set to follow suit later Monday. 

In corporate news, shares in Entain (VIE:GVC), the parent of U.K. bookmakers Ladbrokes (LON:LCL) and Coral, soared 27% after the company rebuffed a bid from MGM Resorts (NYSE:MGM) International over the weekend, saying it "significantly undervalues" the company. 

The corporate sector is otherwise largely quiet as the new year starts, but investors will be keeping a wary eye on Tuesday’s runoff elections in Georgia for two Senate seats that will determine whether the Republican Party keeps control of this branch of the U.S. government.

Oil prices climbed on expectations that a group of the world’s top producers will agree to continue to curb output next month at a meeting later in the day amid worries about demand growth as the Covid-19 pandemic rages.

OPEC and associated producers including Russia, a grouping known as OPEC+, decided at a meeting last month to raise output by just 500,000 barrels per day in January, still more than 7 million barrels a day below peak levels.

U.S. crude futures traded 2% higher at $49.50 a barrel, while the international benchmark Brent contract rose 2.2% to $52.95. 

Elsewhere, gold futures rose 2.2% to $1,937.45/oz, while EUR/USD traded 1.2% higher at 1.2280.

 

European Stocks Soar; Vaccine Rollout Prompts Optimism
 

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Comments (10)
Michael Angelo
Michael Angelo Jan 04, 2021 5:29AM ET
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BS in humongous quantities...
Zack Harding
Zack Harding Jan 04, 2021 5:29AM ET
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From Elephants
James Bell
James Bell Jan 04, 2021 5:14AM ET
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The insanity continues...
Samui Lo
Samui Lo Jan 04, 2021 5:09AM ET
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Buy the rumour buy the news ignore reality and lockdowns
Samui Lo
Samui Lo Jan 04, 2021 5:08AM ET
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Yes at ATH the "forward looking" markets had not priced in a vaccine that was talked about every day since September Smh
Fred Penny
Fred Penny Jan 04, 2021 5:08AM ET
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Inflated Markets based on Hype and Hope. No substance or structure. US and EU markets are not a depiction of the real World.
Camaro Camero
Camaro Jan 04, 2021 5:08AM ET
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Sell weekly puts on the hyped equities, but don't hold them! That's what I do.
Dietmar Stahl
Dietmar Stahl Jan 04, 2021 4:23AM ET
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Absurd still more lockdowns and Euro is to much for more lockdowns.
Sheldon Cooper
Sheldon Cooper Jan 04, 2021 4:14AM ET
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Year 2110: european stocks up amid vaccine hope. 1 bolivar = $100 and bitcoin $1.000.000
Matt Kay
Matt Kay Jan 04, 2021 4:00AM ET
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vaccines again, of course...
Zack Harding
Zack Harding Jan 04, 2021 3:53AM ET
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Another vaccine win? Lol.
Edward Chong
Edward Chong Jan 04, 2021 3:50AM ET
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hur Europe soar???
 
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