Finance Update – A Spoonful of Pfizer

Americas – Trump: vaccine announcement delayed to hurt me

Futures markedly down this morning, US indices reacted favourably at first to Pfizer’s news of successful COVID vaccine tests. The Russell2000 soared 4.21%, the DJ 2.95% and the S&P500 1.17%. The NASDAQ, conversely, lost a per cent and a half!

Never one to spoil a celebration, President Trump immediately accused Pfizer of delaying the announcement until after the elections. Meanwhile, President-Elect Biden is threatening legal action if the General Services Administration delays the presidential transition.

Europe – Indices soar

Despite the Eurozone returning to lockdown, European indices also had a bonanza yesterday – the Ibex adding 8.57% followed by the CAC’s 7.57% and other majors not far behind. The pound yesterday double-bottomed after Parliament rejected Boris Johnson Internal marketA location or entity where people and entities can negotiate and trade assets of value. Bill that would enable breaching the original Brexit treaty.

This morning sees the pound in a hopeful mood after employment data shows a better than expected -29.8K increase in benefit claimants in October, albeit alongside a 3-tick increase in unemployment to 4.8% in September. Earnings also shot up by 1.9% – double the previous quarter, but the UK’s BRC Retail marker fell to 5.2% YoY in October – this despite stockpiling as lockdowns returned towards the end of the month.

Germany’s trade surplusA trade balance that is positive as a result of income (exports on the national level) being greater... increased but at €17.8 bn missed expectations by ½ a bn. On the other hand, the EU’s Sentix Investor Confidence index for November didn’t fall as much as expected, landing at -10.

Asia – Enthusiasm muted

Asian indices are reacting less enthusiastically to the Pfizer festivities this morning, Chinese benchmarks down with the Hang Seng up a mere 0.44% and the Nikkei 0.25% – all this after Chinese CPIs decidedly contracted in October 0.3% MoM while Japan’s Current Accounts fell to ¥1660.2 bn in September.

Meanwhile, in New Zealand, Credit Card Retail Sales soared by 8.8% MoM in October.

Corporate – Canopy soars 76% on earnings

Reuters also reports that alternative energy giant NextEra has put in a $15bn bid for Evergy Inc – a US-based electricity provider.

But yesterday’s big news came from Pfizer, which announced a 90% success rate in 3rd-stage trials for its COVID-19 vaccine. Shares jumped from $36 to $41 on the announcement before settling back halfway at $39.20. Elli Lilly shares jumped 5% after hours as the US’ FDA approved emergency use authorisation for its antibody COVID treatment, while Zoom plummeted 18% on vaccine optimism.

In earnings, McDonald’s had a turbulent day – starting with a $10 bull gapA major change in price for an asset between the close of one trading session (or time-span) and the... before losing double that to lose 1.54% throughout the session – all this thanks to an 11% YoY improvement in EPS at $2.35 and a 2% decline in revenues YoY to $5.4 bn.

Beyond Meat shares lost 4.05% and another 23% after hours despite a 2.7% increase in revenues. The $94.4 mn figure missed expectations. Aurora (+14.9%) revenues rose by 0.4% YoY to $52.3 mn and Canopy (+4.45%) soared by 76% YoY to $104 mn in the previous quarter.

Still ahead – Henkel, Adidas, Land Securities, Siemens, Lyft, Rockwell and Deutsche Post report earnings, while American Express pays dividends.

Commodities – Gold plummets

Besides Zoom, another loser from the Pfizer announcement was safe-haven gold, which yesterday plummeted by $100 per troy ounce on the announcement before regaining some losses – returning the nugget to its 1880 range from a month ago.

And, after accompanying equities rapidly up above the $41 mark yesterday, WTI crude lost half its gains towards the Asian session to land at $39.69. Reuters reports hedgeTo protect one’s investments against losses by investing simultaneously in a (usually) related ins... funds closing petroleum positions as lockdowns and fresh cases stoke fears of a second recession. In response, OPEC+ signalled that its production increase, scheduled for January, could be postponed.

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