Even Asia, after Wall Street and Europe, is celebrating the discovery of the vaccine that could (the conditional is a must) free the world from Covid-19. The exception is partly China, held back by the fall in inflation to a ten-year low. But it's just a cloud, a passing one, in a sky that is already ready for Joe Biden's debut at the helm of the United States.
THREE OTHER DRUGS CLOSE TO THE GOAL
The first vaccine against the coronavirus, developed by Pfizer and BionTech, has completed human trials. The CEO of Pfizer, Albert Bourla, announced "an efficacy of over 90%" after an experiment conducted on 44 people using the messenger RNA method, which consists of inoculating a fragment of artificial RNA into the body . Entered into our cells, this synthetic gene orders them to produce the spike protein, the crown tip of the coronavirus, which is capable of stimulating the immune system and generating a memory.
Three other vaccine candidates are close to the end of the tests: AstraZeneca with Oxford, (in collaboration with the Irbm of Pomezia), the American biotech Moderna and Johnson & Johnson. The European Union has reserved 200 million doses, already in production. Italy will almost certainly receive 13,5% of the total for the first tranche. This is 3,4 million doses. Being a vaccine that needs two administrations, it means providing coverage to about 1,7 million people.
The news gave wings to the price lists, but in a different way.
BANKS, PLANES AND ENERGY AT THE TOP, AMAZON -5%
The US markets most exposed to the "old" economy took flight yesterday: Dow Jones +2,95% (best performance since 5 June), S&P 500 +1,17%. The Nasdaq, in great fibrillation until the announcement, falls by 1,53%. The market discounts the lesser appeal, at least in the immediate term, of the digital economy.
Conversely, the small business index, the Russell 2000, rose by 3,7%.
Netflix leaves 8,5% on the ground, Amazon 5%. Zoom Video, a company active in remote connections, lost 17,3%, less than the bike manufacturer Peloton (-20,3%).
On the other hand, the energy sector runs (+14%) together with the banks.
Airlines go into orbit (+19,4%, Boeing advances by 13,7%). Carnival, the cruise giant, scores up 39%.
NIKKEI OVER 25 THOUSAND POINTS IN TOKYO, INFLATION HOLDS BACK SHANGHAI
In Asia, the most significant performance was achieved by the Japanese Nikkei, which for the first time since 1991 (burst of the bubble and beginning of the great recession) crossed the level of 25 thousand points. The Topix gains 0,9%.
Prime Minister Yoshihide Suga has officially asked the Council of Ministers to draw up a new economic stimulus plan, the third since the outbreak of the pandemic.
Hong Kong's Hang Seng is up 0,7%, the CSI 300 of Shanghai and Shenzhen lists lose 0,2%. The inflation reading released tonight was disappointing, even though the decline to its lowest level in the last eleven years was largely caused by the fall in the price of pork, a fundamental element of China's GDP.
The best stock exchange in the area is that of Singapore (+2,8%), due to the strong presence of companies linked to travel, tourism, gaming and air transport, i.e. all the losing sectors of 2020 due to the pandemic .
THE YEN RISES, THE TURKISH LIRA BOUNCES
The Japanese yen, the best indicator of risk aversion in Asia, appreciates against the dollar: cross at 104,9. The United States currency depreciates against the yuan, to 6,60. Euro dollar at 1,183, up 0,2%, from -0,5% yesterday.
The Turkish lira stabilizes, yesterday in a very strong recovery on all counterparts.
The S&P500 index future is down 0,5% this morning. In the last few hours, expectations of a smooth transition of power in the White House have cooled. Attorney General William Barr has urged federal prosecutors to open investigations into possible vote-rigging that has occurred in recent days.
Brent oil down 0,7% to 42,4 dollars a barrel, from +7% yesterday. Gold returns to 1.880 dollars, +0,8%.
VACCINE, MERKEL'S NEIN IN TRUMP
Net of possible twists, Joe Biden really seems like a lucky man. Not even the time to cross the threshold of the White House, for now forbidden to him by the anger of the president who continues to refuse the eviction, and the president hits the target pursued in vain by Donald Trump, which on July 22 the tycoon had offered the German BioNTech one billion euros as long as the fruits of the research were reserved for the USA, arousing the bitter protest of Angela Merkel. And so there are German contributions, but no American public contributions.
BARCLAYS: TWO DANGERS FOR THE MARKETS REMOVED
"Great news: European science works", tweeted Ursula von der Leyen, president of the European Commission, commenting on the news of the anti-Covid-19 vaccine, the result of an intuition of the German BioNTech developed thanks to the financial and technological strength of the US giant Pfizer . A combination that coincides with the arrival of Joseph Biden in the White House and the reconstruction of the Atlantic axis. Emmanuel Cau, head of European equity strategy at Barclays, comments: “Decisive progress towards a vaccine and the clear outcome of the US election eliminate the two biggest risks for markets. As a result, we expect reflation trading to pick up speed and broaden. A Biden presidency with a divided congress may bring less fiscal stimulus, but should result in a political status quo, a less confrontational US trade policy and a more accommodative Fed stance.
MILAN RECOVERS 20 THOUSAND
It is no coincidence that the European markets were the most enthusiastic. Milan returned to the levels of July, gaining 5,42%, again over the threshold of 20 points. In just six sessions, the Ftse Mib index forfeited around 2.000 basis points of gain (+20% around), reducing the loss since the beginning of the year to -11,70%.
At the top Paris (+7,59%). Fly Airbus (+19%). Tourism and the hotel sector rears its head. But leading the rally are the banks: Bnp Paribas +13,7%, Credit Agricole +18,4%. Frankfurt + 5,20%. The auto sector clears its tyres: BMW +6,3% on a par with Volkswagen. Daimler +5,3%.
BREMBO +6,47%, ROLLS ROYCE +44%
Brembo (+6,47%) runs in Piazza Affari. Brembo executive vice president Matteo Tiraboschi said he did not foresee a temporary suspension of the manufacturers' plants.
London + 4,89%. British Airways advances by 25%, but the prize goes to Rolls Royce: +44%.
THE TEN-YEAR AT 0,72%, FUTURA RAISES 2,5 BILLION AT DEBUT
The BTP closed the session in strongly negative territory in line with euro zone government bonds, which saw yields rise on increased risk appetite fueled by news of the effectiveness of a vaccine for Covid-19.
In closing, the spread on the Bund on the 10-year segment is 123 basis points from 122 at the start and from 124 on Friday.
Yields skyrocket: the ten-year rate in December 2030 stands in the 0,72% area, with a maximum of 0,73%, compared to 0,59% at the start and after closing at 0,62% the previous session.
The launch of the according to Btp Futura dedicated to retail customers, this time with a maturity of 8 years. The placement will continue until Friday.
On the first day, the stock collected orders for over 2,5 billion euro. Last July, on the occasion of the first issue, the demand at the end of the first day of placement had stopped above 2,37 billion.
Giuseppe Sersale of Anthilia describes a memorable day as follows: “Equities accelerated violently upwards, adding spectacular progress to last week's already sensational performance, especially in Europe. Beneath the surface, though, sector rotation is wild. Cyclical and value stocks literally exploded. Banks show double-digit progress. Transport and leisure services gain dozens of percentage points. The defensive ones struggle, while the "stay at home businesses" give way, and in some cases (videoconferencing, remote diagnostics, some social networks, home entertainment, etc.) correct heavily".
DOUBLE-DIGIT RAISES FOR 6 BLUE CHIPS
Six blue chips, likely an all-time record, rallied in double digits. Queen of the list is Leonardo (+16,27%), who recovers last week's crash with interest. Followed by Pirelli (+14,22%); Bper (+14,17%); Unicredit (+13,72%); Eni (+12,78%) and Saipem (+12,31%).
Fly Autogrill (+34,3%). Out of the main basket, Roma stands out (+49,8%), after the takeover bid with the aim of delisting failed.
SUFFERS ONLY DIASORIN
The black jersey goes to Diasorin (-16,5%). The diagnostics company, which has raced with its anti-Covid tests and virtually doubled its share value since March 9, is suffering at the prospect of an effective vaccine quickly. The market prices that molecular tests, which represent about 30% of Diasorin's revenues, will gradually run out soon after the serum is distributed on a large scale.
Some darlings of the price list lose ground: Inwit-3,9%; Finecobank -2,21% (after a quarterly report in line with expectations); Amplifon -2,52%; Recorded -0,84%.
