While the vaccines have given a hint of hope for the economic recovery of most countries including the UK, the ongoing post-Brexit trade talks also have a subtle influence on the global stock market.
By Godfrey Benjamin
Updated
3 mins read
The world is edging closer to an end to the COVID-19 pandemic with the vaccine from the duo of Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) now on the go to being administered across the United Kingdom and the United States of America and the global stocks are responding to this reality. The hope of a vaccine-led economic recovery has sent the E-Mini futures for the S&P 500 up by 0.5% while EURO STOXX 50 (INDEXSTOXX: SX5E) futures added 0.5% while the FTSE futures soared up by 0.1%.
The Dow Jones Industrial Average (INDEXDJX: .DJI) added 0.16% to 30,046.37 points and the MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1%, a growth that tends to complement the highs recorded in the previous week. Japan’s Nikkei 225 (INDEXNIKKEI: NI225) also tagged along with the growth of the global stocks by rising 0.3% to 26,732.44.
A very important driver of the global stock growth as highlighted earlier in the COVID-19 vaccine from Pfizer-BioNTech. The UK has begun the vaccination program per an earlier Coinspeaker report and the United States is on track to innoculate about 100 million people by March 2021.
“The vaccine has and will likely continue to provide a tailwind to the market that is allowing investors to look beyond record case levels, hospitalizations, and deaths,” said analysts at JPMorgan in a note.
From this standpoint, investors are bullish on the market in the hope of a near-term flattening of the COVID-19 related cases and an eventual fade off of any COVID-19 related cases, thanks to the vaccines.
While the vaccines have given a hint of hope for the economic recovery of most countries including the UK, the ongoing post-Brexit trade talks also have a subtle influence on the global stock market.
Per a Reuters report, Sterling firmed on both the euro and the dollar after Britain and the European Union agreed to continue talks on post-Brexit trade beyond Sunday’s deadline. The Pounds Sterling thus rose by 0.7% to $1.3321 against the US Dollar and the euro slipped 0.5% to 91.09 pence.
The finalization of talks in the coming weeks with the expectations of a positive trade deal between the UK and the EU has a great deal of potential in giving the global stock markets a healthy boost. While the complications of the ongoing Brexit trade talks were compounded by the COVID-19 pandemic, the economy’s resilience thus far shows a massive sign of a rebound.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
