Archives of “October 8, 2020” day

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Maj. European indices end the session higher.

  
Analysis, Global Indices

Spain’s Ibex leads the way

The major European indices are ending the session higher for the 3rd time in 4 days this week. The provisional closes are showing:

  • German DAX, +1.0%
  • France’s CAC, +0.8%
  • UK’s FTSE 100, +0.7%
  • Spain’s Ibex, +1.3%
  • Italy’s FTSE MIB, +0.9%
In other markets as London/European traders look to exit:
  • Spot gold is trading up $1.19 or 0.06% at $1888.50.
  • Spot silver is trading up $0.08 or 0.33% at $23.89.
  • WTI crude oil futures are trading up $0.70 and back above the $40 level at $40.65
In the US stock market major indices are now mixed as Pelosi’s recent comments on a standalone airline deal is hurting hopes for a deal and risk appetite.
  • S&P index is still up 10.3 points or 0.3% of 3429.59 but well off the high price of 3444.45
  • NASDAQ index is up 24 points or 0.22% at 11389.07. That is off the high of 11448.23
  • Dow industrial average is trading down -18 points or -0.06% at 28285.30.  It’s high price reached 28459.13

A market perspective: How the race for a COVID-19 vaccine will affect pharmaceutical companies

  
Analysis, Education

Ever since the COVID-19 virus emerged and evolved into a global pandemic, investors have shifted their focus away from small biotech firms to larger pharmaceuticals with robust and structured manufacturing capabilities.

Once the COVID-19 vaccine is discovered, it may generate in excess of $10 billion dollars in annual revenue, but investors are betting that even if a small biotech company with limited funding and equipment discovers the vaccine, a larger company will most likely buy the drug from them.

Alternatively, the smaller company that discovered the drug and the larger company with the production and distribution capability could merge.

Gilead and Eli Lilly, two of the pharmaceutical companies taking center stage in the COVID-19 vaccine race, are foreseeing significant growth in their share value and a rise in innovation in the infectious disease area.

AstraZeneca’s growth in China took a hit given the Chinese economic situation due to the outbreak, and even more so in the EU and the US where large fractions of AstraZeneca’s total revenue is generated. Therefore, AZ joined with Sanofi in an effort to find a vaccine, which will eventually help them regain some of their losses. (more…)

More US stimulus talk expected in the day ahead

  
  Analysis

Mnuchin and Pelosi are said to speak again later today

FOX News’ Chad Pergram tweets on the matter:

Pelosi/Mnuchin expected to speak again today about narrow coronavirus bills today. Specifically for airlines

Hope springs eternal but I don’t see how or why the Democrats will want to pursue piecemeal action on the virus bill. With Biden leading the polls and suggestions of there being a ‘blue sweep’, they have some added leverage in negotiations – for now at least.
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