German stocks benefited from the Pfizer and BioNTech news from the other day concerning the massive success of their developmental vaccine in early trials; namely, the success of the vaccine in preventing symptomatic infections in volunteers.
The DAX index is currently about to test a crucially important resistance area that was last reached in the wake of the coronavirus turmoil. Even still, there are plenty of reasons to doubt the unimpeded continuation of the current rally.
On the one hand, despite the great promise that the potential COVID-19 vaccine is showing, there is still a significant lagging factor to consider. It might be weeks and even months before it can be transported across the world, so major logistical obstacles could impede the fight against the pandemic in the midterm. Hence, in spite of the initial market excitement stemming from the news, investors optimism could quickly wane as governments scramble to overcome these and other problems.
On the other hand, the continually growing number of confirmed cases in Germany and elsewhere remains a constant source of fallout for the DAX. Given that the ECB would continue monitoring the situation until December, the European stock market would not be able to rely on new monetary policy interventions by the end of the year.
|Short Term||Long Term||Net % Gains|
|197 BPS||44 BPS||276 BPS||0||
|197 BPS||44 BPS|
|Net % Gains|
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