Monday evening at 20:00, after the MODERNA vaccine news was announced, spot gold short term decline quickly extended to nearly 30 U.S. dollars.COMEX most active gold futures contract at 19:53-19:54 two minutes GMT trading volume of 8,519 lots, the total value of trading contracts over nearly 1.6 billion U.S. dollars.
Risk assets were boosted by the vaccine news, with WTI crude oil futures rising more than 4 percent on the day before taking $42 a barrel, a daily gain of 4.59 percent. Brent crude futures extended their gains to 4% at $44.49/bbl.
In equity markets, FTSE Russell 2000 futures soared 280 points at one point, Europe’s Stoxx 600 index rose a record high in November, up 14% so far, and Spain’s IBEX 35 broke above 8,100 points, up 4.08% on the day.
In bond markets, Eurozone bond yields rose, with German 10-year government bond yields up 2 basis points on the day, UK gilt yields up 4-5 basis points intraday, and the difference between Italian and German 10-year bond yields fell to a new low of 114.4 basis points since the second quarter of 2018.
On the news, MODERNA reported a longer shelf life for its new crown vaccine, with the company reporting a stable 30-day shelf life at refrigerator temperatures and a 94.5% effectiveness of the new crown vaccine in a Phase III trial. Following the news, Moderna’s U.S. shares extended pre-market gains to 10%, then U.S. further extended to 15%. Pfizer’s pre-market decline widened to 3% and BioNTech SE narrowed slightly to 4.6%.
This time, the information on vaccines, causing a huge shock in global assets, the Golden Ten VIP risk warning report two weeks ago pointed out that stepping into the last two months of 2020, the U.S. vaccine-related news is expected to follow, will bring asymmetric risk to gold U.S. stocks and other assets.
Specifically, MODERNA stated.
“The neo-crown vaccine is generally safe and well tolerated, with side effects including fatigue, muscle and joint pain and headaches, and there are plans to submit the neo-crown vaccine to other global regulatory bodies for authorization, with the expectation that 500 million to 1 billion doses will be produced worldwide in 2021,”
MODERNA also stated.
“The analysis of the Phase III study of the neo-crown vaccine was based on 95 cases, 90 of which were in the placebo group of the trial, and 11 study participants with severe neo-crown pneumonia were given placebo,”
U.S. Health Secretary Azar said following MODERNA’s announcement of the vaccine.
“MODERNA’s vaccine is more flexible than Pfizer’s vaccine.”
In addition, EU Health and Food Safety Commissioner Kiriakides said that the results of MODERNA’s new coronary pneumonia vaccine are encouraging and that more vaccine deals will be coming soon. For its part, the UK responded that MODERNA is currently expanding its European supply chain, which means that these vaccines will be available in the UK as early as spring 2021.
In addition to the news of MODERNA’s vaccines, Timothy He, president of French pharma giant Sanofi China, said recently at the Sanofi Innovation Conference: “Sanofi’s new crown vaccine remains unchanged for now, with plans to launch in the second quarter of next year.”
He said Sanofi is one of the few vaccine companies in the world that is currently developing two technology lines. He stressed.
“We must remember that a vaccine must be injected into a patient before it is considered a success, and we need to rigorously verify its safety and effectiveness.”
Currently, it’s worth noting that issues with the logistics, price, sequence of vaccination, and quantity of the vaccine have yet to be resolved. Currently, many developing countries are concerned about their ability to book limited quantities of vaccines while at the same time afford the high price of imported vaccines.
Earlier, Dr. Fauci, Director of the National Institute of Allergy and Infectious Diseases in the United States, stated.
“The U.S., the U.K., the European Union, Canada and Japan have already purchased about 1.1 billion doses of vaccine through advance purchase agreements, which represents more than 80 percent of the supply.”
Additionally, according to NPR News, researchers at Duke University predict that.
“Despite international agreements calling for an equitable distribution of vaccines globally, billions of people in low- and middle-income countries may not be vaccinated until 2023 or even 2024.”
Finally, investors need to be reminded that while the good news coming from the vaccine side is welcome, the economic damage caused by the epidemic will not be recovered overnight, and time has yet to tell when the vaccine will be available to all.
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