European stocks rose on Wednesday when investors drew positive results from initial trials of an experimental coronavirus vaccine produced by modern biotech firm (MRNA).
The possible vaccine, developed by researchers at the U.S. National Institute of Allergy and Infectious Diseases, sparked a promising immune response and seemed safe in 45 healthy volunteers in an early-stage study.
The pan-European STOXX 600 index (^ STOXX) rose around 1.2%, while the London FTSE 100 (^ FTSE) rose nearly 1%.
Germany’s DAX (^ GDAXI) was up around 1.2%, while France’s CAC 40 (^ FCHI) was up nearly 1.6%.
Data from the Moderna trial was based on promising but incomplete past results that the company had released in May. A late-stage test of the vaccine candidate will begin on July 27.
“It is that time again. After the Dow Jones rose 557 points Tuesday night, choosing to focus on bank earnings in the COVID-19 cases, European markets were excited by the latest news on vaccines, “said Connor Campbell, financial analyst at the Spreadex trading platform.
“This week, the spinning wheel landed on Moderna, which reported that its COVID-19 vaccine had produced a ‘robust’ immune response in all 45 patients in its initial human testing stage,” he said.
“As with every vaccine update, the fact that these are only small steps when considering the shipping timeline, mass production, and implementation did not prevent investors from buying optimism.”
Shares in Asia mixed on Wednesday as mounting tensions between the United States and China weighed on optimism.
United States President Donald Trump on Tuesday imposed sanctions on China after the introduction of a national security law in Hong Kong, which has dealt a severe blow to the region’s autonomy.
The Shanghai SSE Composite Index (^ SSEC) fell nearly 1.6% on Wednesday, while the Hang Seng (^ HSI) closed more than 0.1% in red in Hong Kong.
Japan’s Nikkei (^ N225) was up 1.6%, while the KOSPI Composite Index (^ KOSPI) in South Korea closed 0.8% green. Australia’s ASX 200 (^ AXJO) increased nearly 1.9%.
Futures pointed to a greater openness for US stocks on Wednesday.
S&P 500 futures (ES = F) rose about 0.8%, while Dow Jones Industrial Average futures (YM = F) rose about 1%. Nasdaq futures (NQ = F), meanwhile, rose about 0.5%.
