DUBLIN: European markets rose to an eight-month high following indications that the COVID-19 vaccine may hit the market soon.
News that Pfizer and BioNTech have made progress on their COVID-19 vaccine has spread across the global market. Pfizer and BioNTech said the experimental vaccine was more than 90% effective in preventing COVID-19.
The biggest gains in Dublin and across Europe were for travel and leisure stocks. The Dublin shares are up 3.18% overall.
The largest hotel operator in Ireland, Dalata and the European low-cost airline Ryanair, saw the biggest early gains among the Irish shares. Dalata shares are up about 19%, while Ryanair shares are up more than 13%.
The pan-European STOXX 600 rose more than 4% to its highest level in nearly six months.
The shares of the German biotechnology company, BioNTech jumped more than 27%, while the main stock index of Germany added around 6.5%.
“The news on Pfizer’s vaccine has brought down the uncertainty on the vaccine front and has helped markets regain their lost confidence which is even more important now with a second virus wave spreading across Europe,” said Andrea Cicione, head of strategy at TS Lombard in London.
In view of the second wave of COVID-19, the market suffered a major setback as the UK, Ireland and France announced new lockdowns nationwide.
Meanwhile, optimism for global trade has hit the market with the victory of Joe Biden in the US presidential election. Biden’s victory is also expected to boost the UK / EU Brexit trade talks.