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As Vaccine Hopes Rise, So Do European Markets

The European stock market began looking up Tuesday morning as the numbers started reflecting new hope on the coronavirus pandemic tails. The FTSE 100 (FTSE) in Britain rose by 0.7 percent, France’s CAC 40 (FCHI) saw an increase of 1.2 percent, and the German DAX (GDAXI) was up by 1.4 percent when markets opened for the day.

While many feel that coronavirus restrictions will be lifting too soon in Britain, it’s expected that Prime Minister Boris Johnson will soon ease lockdown further with the announcement of museum and theater reopenings scheduled for July fourth. Amid concerns with the ongoing pandemic, further restrictions of social distancing will also be lifted.

Pairing coronavirus restriction loosening with the Tuesday announcement of a new vaccine possibility by the pharmaceutical company Sanofi (SNY) created the perfect conditions for markets to take an upward turn. Sanofi partnered with GlaxoSmithKline (GSK.L), a pharmaceutical company in the U.K., for development and trial of the vaccine, which is expected to be rolled out late 2021 if deemed successful.

Following the announcement Monday by President Donald Trump that the U.S. will uphold its trade deal with China, Asian markets also saw a definite increase. The Nikkei (N225) in Japan rose by 0.5 percent, and the Shanghai Composite Index (000001.SS) increased by 0.2 percent. The Hang Seng Index (HSI) of Hong Kong also jumped by 1.3 percent.

With the virus still rising globally, investors are still wary of further expected impacts on worldwide markets.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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