Yesterday, the UK’s health agency, the MHRA, announced approval of Pfizer and BioNtech’s request for emergency approval for their COVID-19 vaccine. This makes the UK the first country to have approved any Coronavirus vaccine, which will begin being administered as early as next week.
Currently, there are 800,000 doses on the way to the UK with elderly people and their caretakers slated to be the first to receive this vaccine. This comes on the heels of governments across Europe and some American localities imposing new lockdown restrictions to help curb the spread of the virus. In reaction to this long anticipated COVID vaccine, some shares, commodities, and index futures moved higher during yesterday’s trading.
Vaccine developers saw a boost in share prices, such as Moderna (MRNA), which closed 1.4% higher. Even Astrazeneca (AZN-L), who need to retest their vaccines after inconsistent testing reports, notched 1.2% higher to £7972 per share before closing at £7,926.
Oil Climbs Following Vaccine Approval
Oil futures traded higher yesterday as markets looked beyond the pandemic to an eventual softening of lockdowns, following the vaccine news. Since March of this year, Oil has struggled to return to pre-pandemic valuations.
American West Texas Intermediate Oil (CL) futures rose 3.5% to a high of $45.88 during yesterday’s trading before closing the day at $44.94. North Sea Brent Crude (EB) futures rose 3.7% to a high of $48.74 during yesterday’s trading, yet closed the day at $47.98. This also pushed British Oil and gas producer, BP (BP-L) to close 4.7% higher during yesterday’s trading.
This vaccine approval indicates a turning point in the fight against the Coronavirus. While it may be some time before full populations can be immunized, leaving traders to speculate on the potential for future market volatility.