Vaccine enthusiasm subsides swiftly following initial Dax boost
Moderna's COVID-19 vaccine, which is expected to be distributed in the US under an emergency use authorization in December, has shown promising results. The vaccine, which requires two doses given 28 days apart, has been demonstrated to be 94.5 percent effective in preventing COVID-19 infections.
This news has sent waves through the financial markets. Moderna's share price has surged significantly since the initial announcement of a 90 percent efficacy rate a week ago, with a temporary increase of over 11 percent in German trading following the announcement of a 94.5 percent COVID-19 vaccine efficacy rate. However, shares of BioNTech, Moderna's competitor, plunged by more than 10 percent in German trading after the Moderna vaccine efficacy announcement.
The positive news from Moderna has also had a positive impact on global markets. On Monday, the DAX, Germany's stock market index, initially surged around 1.5 percent due to the announcement, closing at a new high of 13,140.08 points, up 0.59 percent from Friday's close. The DAX later gained further, closing at 13,138.61 points, up 0.47 percent from Friday's close.
The euro also strengthened against the US dollar on Monday afternoon, with one euro trading at 1.1848 USD (+0.1 percent compared to the previous afternoon). This marks a slight increase from the previous strengthening on Monday afternoon, when one euro traded at 1.1844 USD (+0.06 percent).
Pfizer and BioNTech published their COVID-19 vaccine efficacy rates on Monday, with Pfizer's vaccine showing a 94.5 percent efficacy rate and BioNTech's showing a 90 percent efficacy rate. The next data release from both companies is expected in December 2020.
Moderna plans to produce 20 million doses of its COVID-19 vaccine by the end of 2020, a significant step towards controlling the global pandemic. With the vaccine's high efficacy rate and increasing production capacity, there is hope that the end of the pandemic may be in sight.
