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Pfizer and BioNTech announced a 90 percent effectiveness in the vaccine they develop together, and not only their shares but also the stock markets in the world were filled with profits and the price of oil soared.
But the other side of the euphoria was the fall in gold and losses in the shares of companies that have had business opportunities in the pandemic.
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In Colombia, the stock market also responded with gains, and in particular Avianca’s battered stock cooled off and Ecopetrol had a significant rise in oil prices. The rise in crude oil was also felt strongly in the exchange rate, and the peso strengthened against the dollar.
Pfizer and BioNTech reported that their vaccine against the novel coronavirus had been “90 percent effective,” according to the first interim analysis of their phase 3 trial, and their shares ended up up 7.7 percent that of Pfizer, and 14 percent that of BioNTech.
Even at the start of the day, BioNTech managed to gain 25 percent, and Pfizer, 17 percent. In addition, other companies investigating for a vaccine also won: Moderna, 7.3 percent, and Johnson & Johnson (with tests in countries like Colombia) 2.69 percent.
The greatest effect of the vaccine on the bags was in Europe, which these days suffers the blow of outbreaks and new confinements. Having already opened positive for Joe Biden’s victory in the US elections, the bags were literally propelled after the announcement of the pharmaceutical companies.
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Thus, Madrid closed up 8.57 percent, the largest increase in one day in 10 and a half years. Paris won 7.57 percent; Frankfurt, 4.94 percent (highest rise since May 18); London, 4.67 percent (highest increase since March 23), and Milan, 5.43 percent (highest increase since March 24).
According to Julián Cárdenas, from the Vice Presidency of Protection Investments, “the European stock market has been affected more than the United States by covid-19, which has generated the news of the success of the vaccine, in its preliminary results of their phase 3 trials, have had a greater response ”.
On the other side of the Atlantic, Wall Street seemed to advance during the day towards new records that at the end of the day did not materialize. The falls in some stocks that have benefited from the crisis offset the significant increases in stocks that have suffered from the pandemic, which prevented a record breaking yesterday on the New York stock markets.
At the opening, the Dow Jones index rose more than 5 percent, which if it had been maintained would have meant a new record, surpassing the current one, in force since February, before the pandemic. At the close, it rose 2.95 percent and stood at 29,157.97 units.
The S&P 500 gained 3.72 percent before noon, which also took it to a record, since the high of early September, but ended up 1.17 percent, to 3,550.50 points.
The Nasdaq index, which concentrates important technology companies, opened gaining 1.25 percent, but closed losing 1.53 percent, to 11,713.78 points. The reason is that this indicator includes several of the main companies that have had better opportunities due to the pandemic.
For example, the share of the video calling company Zoom, emblematic for virtual work because of the confinements, fell 17 percent. Netflix (9%) and Amazon (5%) also fell.
In Asia there was also a day of earnings, but related to the triumph of Joe Biden in the United States elections, since the announcement of Pfizer and Biontech was after the closing of those markets.
In this regard, the Global Securities Strategies team commented that “another positive fact is that the Democrats will most likely not have control of Congress, since the Senate would have a Republican majority. This will only be defined until January with a second round in Georgia, but for now the lack of control of the Senate by the Democrats has been taken with optimism by investors, as there is no possibility that a radical agenda will be approved.
The Nikkei index of the Tokyo Stock Exchange closed higher at 2.12 percent, reaching levels it had not seen since 1991. In Hong Kong, the Hang Seng index rose 1.18 percent, while the Shanghai Composite Index rose 1 86 percent and Shenzhen 2.25 percent.
Dollar, Avianca and Ecopetrol, the effects in Colombia
In the financial markets of Colombia, the effect of the announcement of the pharmaceutical companies Pfizer and BioNTech on the effectiveness of the vaccine against covid-19 that they have been developing was also felt.
The strong increase in oil prices, driven by the expectation that vaccines will facilitate a return to normality in the world economy, impacted both the stock market and the price of the dollar.
Yesterday, the average price of the US currency was 91 pesos below the representative market rate (TRM) in force for the day. The dollar was traded on average at 3,647 pesos against the TRM of 3,738 pesos. The currency’s fall of 2.44 percent is the largest since November 30, 2016, when it fell 2.51 percent.
Even in the morning 115 pesos were negotiated below the TRM, when there were transactions of 3,622.5 pesos per dollar.
The TRM for today will be 3,646.15 pesos per dollar. Last week, the foreign currency had lost a total of 114 pesos in the four trading days.
In the stock market, oil drove Ecopetrol shares, which had a 5.7 percent gain. Overall, the Colombian Stock Exchange’s shares had a gain of 3.5 percent, according to the Colcap index.
In any case, Ecopetrol was not the Colombian title that won the most. The stock that had the biggest jump was Avianca Holdings, whose price had an increase of 16.2 percent.
In reality, the airline sector was one of the great beneficiaries of the expectation of the vaccine, after having been hit by the closures of the countries and the dramatic reduction in mobility and tourism.
In Brazil, for example, the shares of the airlines Gol and Azul rose 19.94 and 18.43 percent. At the close, the São Paulo Stock Exchange obtained a profit of 2.57 percent, thus achieving five days of profit in series.
Meanwhile, in the Mexican Stock Exchange the gains were 2.91 percent. The biggest increases were those of the Gentera banking group, with 26.1 percent.
For its part, in Argentina, the Buenos Aires stock market obtained 2.39 percent gains. There, the shares of the oil company YPF stood out, whose price increased by 8.03 percent.
Oil and gold, in opposite directions
Following the announcement of the effective results of the Covid-19 vaccine from Pfizer and BioNTech, oil prices soared, but gold prices fell.
The price of a barrel of Brent oil for January delivery ended Monday on the London futures market at $ 42.36, 7.43 percent more than at the end of the previous session.
Meanwhile, in New York the price of intermediate oil from Texas (WTI) closed with an increase of 8.48 percent, to 40.29 dollars a barrel.
But not all raw materials won. The price of gold fell, the asset haven par excellence, when there is crisis and nervousness.
The ounce of gold fell 4.4 percent after the news about the possible vaccine, according to market data. The ounce of gold fell to 1,865.8 dollars, equivalent to 86 dollars less than at the close of last Friday.
The price of gold, which had ended on Friday at $ 1,951.35, oscillated in yesterday’s session between the maximum of $ 1,965.28, marked two and a half hours before the European stock markets opened, which implied a revaluation of the 0.71 percent, and the minimum of 1,851.32 dollars (that is, a fall of 5.13 percent over the previous session), marked at the close of the trading day in the Old Continent.
Precious metals such as gold are considered a safe haven investment in times of market volatility and their value tends to go in the opposite direction to that of stocks, which rose sharply on Monday.
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ECONOMY AND BUSINESS
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