By Eurasia Business News – November 10, 2020   

Stock exchange monitoring board – Photo credit : Pexels

After yesterday’s major surge (+ 7.57%) following the announcement of the Pfizer and BioNTech laboratories on the positive outlook for their candidate vaccine against Covid-19, the French CAC40 continues its rise by gaining around 1% at the end morning at almost 5,400 points, levels that go back to the beginning of March. The stocks most exposed to the health crisis continue to rebound since Tuesday. The banking sector also remains well oriented after its surge the previous day in the wake of the sharp rise in bond rates. London followed the same trend, while Frankfurt remained around equilibrium.

Eli Lilly and Company, the laboratory based in Indianapolis, in turn stood out in the pharmaceutical sector. Thus, the FDA, the American drug agency, has just authorized the emergency use of its experimental treatment with antibodies against Covid-19 in the case of patients who are not hospitalized but at risk of falling seriously ill because of their age or of their health. The FDA justifies its decision with data showing that a single injection of the treatment would reduce the need to hospitalize or urgently treat infected high-risk patients. The White House hailed the FDA’s decision, citing a ‘major turning point’.

However, if investors have “high hopes“, there is still “a long way to go” before the vaccine is released on a large scale.

The number of Covid-19 cases is surging in the United States and in Europe. In addition, the effects of the restrictive measures and lockdowns are hitting the economy. Investor morale deteriorated again in Germany in November and hit its lowest level since April. In France, unemployment jumped to 9% of the working population during the third quarter, despite the strong support to the economy and companies brought by the French Government.  

Rising values

At the top of the CAC40, BNP Paribas is still up almost 6% to 41.5 euros. Crédit Agricole and Société Générale gained around 4%. 

The French real estate investment trust and Europe’s second-biggest publicly traded mall operator Klepierre is still soaring by 20% to 18.1 euros. Its stocks have recovered more than 50% since yesterday and the announcement of the Pfizer-BioNTech duo on the effectiveness of their candidate vaccine against the coronavirus. While there is still a long way to go, operators are counting on a return ‘to normal’ faster than expected after this announcement.

In addition to Klepierre, which also announced on November 9 the placement of 600 million euros in bonds due 2031, Icade gained almost 9% (after 23.5% yesterday) and Unibail-Rodamco-Westfield soared 25% ( + 24% on Monday) while the shareholders rejected the draft resolution concerning the capital increase desired by management.  Three of the opponents of the strategy join the group’s supervisory board.nThe action climbed 26.24% to 53.98 euros, up more than 56% in two days. Since January 1, the title has lost even more than 61%.

Values ​​around aeronautics continued to rise after having already taken off the day before. The vaccine is the best way to get back to normal in sectors in crisis. In London, the airline group IAG, owner of British Airways, took 9.08% to 142 pence and the manufacturer of aircraft engines Rolls-Royce 19.15% to 119 pence. In Paris, Airbus climbed 4.39% to 86.67 euros and Air France KLM 9.95% to 4.31 euros.

Oil stocks are also continuing their rebound that began yesterday: Vallourec gained 14%, CGG and TechnipFMC 9%. Oil futures settled sharply higher November 9 on the back of improved demand outlooks following reports of a breakthrough in COVID 19 vaccine research. Crude prices soared by 10 percent and WTI Crude topped $40 a barrel on Monday morning.

The French Renault (+ 5%) benefits from an opinion of Citigroup which assessed the car maker from 32 to 40 euros.

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