AstraZeneca’s Vaccine Trial Results Boost Markets
AstraZeneca Reported Encouraging Trial Results But Its Stock Is Set To Open Lower
The company tested two dosing regimens. The first one, which showed efficacy of 90%, included a half dose of the vaccine followed by a full dose a month later. Interestingly, the second regimen, which included two full doses separated by a month, showed efficacy of just 62%.
AstraZeneca’s shares are down by more than 1% in premarket trading as traders focused on the headline efficacy rate of 70% which included results of both dosing regimens.
However, the world has just received another COVID-19 vaccine, and the markets can’t ignore it. S&P 500 futures are gaining more than 0.5% in premarket trading as traders believe that mass vaccination will soon provide huge support to the economy.
PMI Reports Indicate That The Services Segment Is Under Pressure
Soon after the market open, traders will have a chance to evaluate flash PMI reports for November. U.S. Manufacturing PMI is projected to decline from 53.4 to 53, while Services PMI is expected to decrease from 56.9 to 55. Numbers above 50 show expansion so PMI reports are projected to show that the economic recovery continues at a healthy pace.
PMI reports from other countries, which were released earlier today, indicated that services were hit hard by the second wave of the virus.
In the UK, Services PMI declined from 51.4 in October to 45.8 in November but remained well above the analyst consensus of 42.5. Meanwhile, Euro Area Services PMI declined from 46.9 to 41.3 compared to analyst consensus of 42.5.
The current analyst estimate for U.S. Services PMI looks rather optimistic, and it remains to be seen whether the services segment managed to continue its recovery at a healthy pace despite the second wave of the virus.
Oil Tries To Settle Above The $43 Level
Not surprisingly, positive vaccine news provided material support to the oil market, and oil made an attempt to settle above the $43 level.
Back in August, oil’s upside move was stopped at $43.75, and oil is slowly climbing towards this important level. If oil manages to get above $43.75, oil-related equities will likely experience a major boost.
For a look at all of today’s economic events, check out our economic calendar.