Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The growth currently observed in the global stock market may be the tip of the iceberg compared to the period when a vaccine will be approved by authorities around the world and will go into wider circulation.
The global stock market has seen an increased boost or growth following the positive COVID-19 vaccine news that emanated from Pfizer Inc (NYSE: PFE) in the past week. The positivity surrounding a functional and effective COVID-19 vaccine has renewed the hopes of a scheduled global economic recovery and this is having a positive impact on investor sentiment across all markets.
To begin with, the MSCI World Index of global shares climbed by 0.4% to 608.98 points. The growth seen in the MSCI World Index as noted by Reuters was driven by impressive overnight gains in Asia’s leading markets and a stronger open for most European stock exchanges. Also, MSCI’s broadest index of Asia-Pacific shares outside Japan saw a record-breaking pump, such as has never been seen since the index launched in 1987.
The FTSE 100 Index (INDEXFTSE: UKX) added an additional 43.44 points or 0.69% gain to 6,359.83. STOXX Europe 600 (INDEXSTOXX: SXXP) also grew by 0.71% to 387.93.
“With the futures pencilling in a 300 point rise, the Dow is set to start the week at 29,770, finally making good on the all-time high intraday levels struck this time last week,” said Connor Campbell, a financial analyst at Spreadex. Campbell’s forecast hits the bull’s eye as the rally spread down to Wall Street with Dow Jones Industrial Average (INDEXDJX: .DJI) leading the growth.
While the Dow rose by 1.37% to 29,479.81, the S&P 500 Index (INDEXSP: .INX) surged by 1.36% to close at 3,585.15 on Friday. The Nasdaq Composite (INDEXNASDAQ: .IXIC) was also not left behind in the bull run as the tech-heavy index closed its trading day up by 1.02% to 11,829.28.
Global Stock Market Hoping on Vaccine Debut
The impressive runs of the entire global stock market have placed its hopes on the debut of the COVID-19 vaccine. With Pfizer making the first efficacy revelation of its vaccine, the world awaits calls from other firms working on a vaccine and expecting late-stage trial results anytime from now. Moderna Inc (NASDAQ: MRNA) ranks as one of the firms with enormous expectations hovering on it.
The coronavirus pandemic affected the global stock market by crippling the global supply chain. With serious interdependence among companies across different regions, the halt in most cross-border transactions and trades had its toll on firms worldwide.
Since the global stock market encompasses all industries, several markets or industries suffered a direct impact on the pandemic including the travel industries amongst others. This set of industries will also be some of the biggest beneficiaries of a COVID-19 vaccinated world. In all, the presence of a vaccine will restore hopes for businesses all over the world to return to the pre-pandemic levels.
The growth currently seen in the global stock market may just be the tip of the iceberg compared to the period when a vaccine will be approved by authorities around the world and will go into wider circulation.