In the first precedent in history, the world witness harnessing all its capabilities, and racing to reach a definitive solution to the stubborn virus that broke out for the first time in December of the last year 2019, but quickly spread to infect millions around the world.
To be fair, the response of the pharmaceutical sector around the world and the speed of reaction, to reach as quickly as possible an effective vaccine, against this rapidly spreading virus, were very surprising. As is known scientifically, the process of developing vaccines usually takes years, and it is a complex process, in which the stage of laboratory experiments may take years, before reaching ready candidates for testing in humans.
According to the New York Times Coronavirus Vaccine Tracker, researchers around the world have begun to develop more than 165 vaccines against the Coronavirus, of which about 32 vaccines have reached the stages of human trials, and two of them have received approval from the regulatory authorities in their countries, the first one, is the vaccine developed by CanSino Biologics in partnership with the Institute of Biology at the Academy of Military Medical Sciences in China, which has obtained accreditation for limited use by the Chinese Ministry of Health, lately on August 9 the Saudi Ministry of Health announced, that CanSino Biologics will conduct a phase III trial in Saudi Arabia.
The second vaccine, which received emergency approval for early use, from Russia Ministry of Health without going through the third stage of human testing, was called Sputnik V.
Vaccine experts condemned this step and described it as risky. However, some countries took the initiative to order millions of doses of the new Russian vaccine.
The market reacts to this race towards an effective vaccine that stops the spread of the Covid-19 virus with hope to see its results emerging soon, and this has been reflected in the recent movements of the US stock market indices, as it resisted selling pressures and maintained the gains that it had made since Early July. The DJI30 maintained its gains at levels of 27750 points, as well as, S&P500 stabilized around 3378 points, while the Nasdaq100 succeeded in achieving new historical highs at levels of 11529 points, at the time of writing this article. despite the existing downside risk in the market that is not going anywhere the bulls still intact.
If positive news regarding vaccines continues, we may witness a new rally in stock market indices, to continue the current Uptrend, before the markets begin to price the Federal Reserve’s action, and other central banks following the fed later, to reduce their bond purchases and tapering the current stimulating programs. at this point, the markets start a wave of correction to the downside.
Written by Ramy Abouzaid, ATFX (CY) Dubai Rep Office Head of Market Research.
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