“Wall Street” was escalated by the announcement by “Moderna” of an effective vaccine .. Hopes of an economic recovery increased


The main indexes on Wall Street rose at the opening yesterday, after Moderna said that its experimental vaccine has proven to be 94.5 percent effective in preventing Covid-19 disease, which reinforces hopes that the economy is recovering after a year of a slowdown triggered by the pandemic.
According to “Reuters”, the Dow Jones Industrial Average rose 192.55 points, or 0.65 percent, to 29,672.36 points at the beginning of the trading session.
The benchmark Standard & Poor’s 500 Index rose 15.01 points, or 0.42 percent, to 3600.16 points, while the Nasdaq Composite Index increased 17.82 points, or 0.15 percent, to 11847.11 points. The three indices extended their gains in early trading.
On the other hand, the European stock market closed at its highest level in more than eight months yesterday after positive data from Moderna regarding a vaccine to prevent Covid-19 disease and encouraging data from China, which boosted investor confidence in a faster pace of economic recovery.
Moderna became the second pharmaceutical company in a week to announce a high efficacy of an experimental anti-Coronavirus vaccine, after Pfizer issued a similar announcement on the ninth of November.
The pan-European STOXX 600 index ended the trading session up 1.3 percent, supported by strong gains in oil companies’ shares, following a 4 percent jump in crude prices.
The index of European bank shares rose 3.1 per cent, driven by a 16 per cent jump for Spanish bank BBVA, after the BNC Financial Services Group said it would buy its activities in the United States for $ 11.6 billion in cash.
In Asia, Japanese stocks touched their highest level in 29 years yesterday, after the economy grew for the first time in four quarters and in light of progress towards a vaccine for Covid-19, which continued to raise global markets.
The Nikkei index closed up 2.05 percent at 25,906.93 points, its highest close since June 1991. The broader Topix index rose 1.68 percent to 1731.81 points.
Japan’s economy grew at a faster-than-expected annual rate of 21.4 percent between July and September, after shrinking 28.8 percent between April and June.
Sentiment was also boosted after Chinese data showed factory production in the world’s second largest economy grew faster than expected last month and retail sales accelerated, as the recovery momentum from the recession caused by COVID-19 intensified.
And optimism about the innovation of a vaccine overshadowed the growth of Covid-19 cases worldwide, after encouraging news from “Johnson & Johnson”, as the American drug maker yesterday launched an advanced stage of its vaccine tests, following promising developments from “Pfizer” and “Moderna”.
But some analysts are advising caution in light of the reimposition of restrictions in the United States and Europe to contain an increase in new infections, which could fuel volatility in the market.
“There may be a correction in the short term, but news that the development of several vaccines has reached advanced stages indicates that the decline will be limited,” said Masayuki Kichikawa, chief macroeconomic strategist at Sumitomo Mitsui Asset Management.
The gains were among the top 30 stocks on Topix, “Honda Motor”, up 4.84 percent, and Mitsubishi Financial Group “UFJ”, gaining 3.48 percent, while Nintendo fell 1.91 percent and “Confirma” Pharmaceutical Industries, 0.97 percent.
In addition, stock markets rose in the Gulf yesterday, as the Abu Dhabi Stock Exchange led the gains, supported by indications of economic recovery and more positive data on a vaccine against Covid-19 disease.
The drug company Moderna said yesterday that its experimental vaccine is 94.5 percent effective in preventing the Corona virus, which has ravaged economies around the world.
According to “Reuters”, the main stock index closed in Dubai, up 1.6 percent to 2299 points, supported by a 3.8 percent jump for the leading “Emaar Properties” and the rise of Emirates NBD Bank 1.5 percent.
The Abu Dhabi index advanced 1.6 per cent to 4,952 points, supported by a 3.4 per cent jump for First Abu Dhabi Bank, the largest bank in the UAE, and a 0.5 per cent increase for Etisalat Group.
The Vice President of the Emirates said yesterday that the country has added new categories to the “golden” residency system, which grants those entitled to residency for a period of ten years. Among these categories are holders of some professions, holders of a doctorate, and others.
The Qatar index advanced 0.2 percent to 10227 points. Bahrain’s index rose 0.5 percent to 1,447 points. Muscat index rose 0.1 percent to 3,643 points. The Kuwait index rose 0.4 percent to 6,013 points.
In Cairo, the main index of the Egyptian Stock Exchange rose 0.4 percent to 10992 points, with most stocks rising, including “Talaat Mostafa Holding”, which jumped 5.2 percent.


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