Coronavirus: Investors to focus on the upbeat scenario

Markets are torn between promising vaccine news and grim reality but as US covid cases show tentative signs of flattening, investors could see the glass as half full than half empty, FXStreet’s Analyst Yohay Elam informs.

Key quotes

“Light at the end of the tunnel – Pfizer and BioNTech reported 95% efficacy in their coronavirus candidate, better than 90% initially reporting and topping rivals Moderna. However, production, storage, and distribution challenges mean a long road to the end of that tunnel. After the initial shot in the arm, markets looked back at grim reality.” 

“COVID-19 cases continue rising in the northern hemisphere, hitting Europe, the US and even Japan. Governors in various American states have begun introducing restrictions, following governments and regions in the old continent. The potential damage to economic activity – both from lockdowns and from consumer caution – is of concern.”

“A daily average of around 160,000 cases is still worrisome and implies hospitals and mortalities are set to rise. Moreover, this may be a mere consolidation of the uptrend rather than a change of course. Nevertheless, a pause is better than an extension of an uptrend. Also, measures already implemented by various states could still push the curve down.”