Recovery package and vaccine hopes dominate market news

RISING HOPES that a vaccine could be developed for the coronavirus have helped to boost sentiment on global markets, according to a leading Yorkshire-based analyst.

However, James Rowbury, the investment research coordinator at Redmayne Bentley, said there are still no signs of the crisis ending as cases around the world continue to increase, sparking further uncertainty among investors.

Mr Rowbury, who is based in Leeds, said: “AstraZeneca and Oxford University have partnered to produce a vaccine against Covid-19. The pharmaceutical giant hopes to start distributing the vaccine by the end of the year after committing to making two billion doses. This followed initial trial results which suggested the vaccine generates a strong immune response which seems to be safe for humans.

“The firm stated that late-stage phase one and two trials currently being carried out in the UK will establish how well the vaccine can protect from Covid-19, while measuring safety and immune responses throughout different age ranges and doses.”

The UK Government has ordered 100 million doses of the vaccine, and the company’s stocks have been rising steadily since the promising announcement last Monday, Mr Rowbury said.

He added: “After a long weekend of talks, EU leaders have reached a deal on a huge recovery package following the pandemic.

“The deal involved €750bn composed of both grants and loans in order to counter the effects of the virus for the 27 members.

“Following many disagreements relating to cost concerns, EU members agreed on the largest-ever joint borrowing scheme.”

The hardest-hit countries, such as Italy and Spain, are to receive a €390bn package and a further €360bn in low-interest loans will be offered to members of the bloc.

“The members were split between those who were keen to recover their economy following a heavy impact from Covid-19 and those who were more concerned about the costs of the recovery plan, such as Sweden and Denmark.”