Pfizer and BioNTech will supply a COVAX program to accelerate vaccine distribution in lower-income countries.

The coronavirus vaccine progress is the latest factor guiding investors and analysts in making investment decisions. Fund managers are observing the rebounding of each sector from the adverse effect of the pandemic.

Following the global economic meltdown caused by the global health crisis, the world is expected to rebound by over 4% in 2021. According to a Reuters report, Refinitive Institutional Brokers Estimate System forecasts (I/B/E/S) 2021 earnings in Europe would advance by 38%. Also, the Refinitive I/B/E/S predicts that 2021 earnings in the US will grow by 21%.

Investment Decisions amid COVID-19 Vaccine Progress

Despite the optimistic predictions, the lockdown extensions caused by the second wave of the pandemic seem discouraging.

The head of the currency strategy at TD Securities, Mark McCormick, said:

“The vaccine race remains the major wild card here. It will shape the outlook and perceptions of global growth leadership in 2021. While vaccines could reinforce a more synchronized recovery in the second half (2021), the early numbers reinforce the shifting fundamental between the United States, euro zone and others.”

Slow distribution of the coronavirus vaccine could force the governments and central banks to issue additional stimulus. Due to slower vaccine programs in the euro zone, chief economist at BNY Mellon Investment Management Shamik Dhar said that a rebound in the jurisdiction looks “a bit more cloudy.”

Before now, Dhar expected double-digit GDP bouncebacks in the US and Britain.

As it stands, the France and Netherlands governments are planning to declare night-time curfews amid the increasing number of coronavirus cases.

The slow vaccine distribution has also made the senior European economist at Capital Economics, Jack Allen-Reynolds, review his euro zone 2021 GDP prediction. The economist said he had reduced his forecast by 4%. He added:

“We assume GDP gets back to pre-pandemic levels around 2022…the general story is that we think the euro zone will recover more slowly than US and UK.”

Pfizer and BioNTech to Supply WHO’s COVAX Program

Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) will supply a COVAX program to accelerate vaccine distribution in lower-income countries. The COVAX program is led by the World Health Organization (WHO), Coalition for Epidemic Preparedness Innovations (CEPI), and Gavi. The program aims to distribute about 1.3 billion doses of vaccine to 92 low-income and middle-income countries globally.

BioNTech has been recording gains in its stock over the past months. MarketWatch data revealed that the company has grown by over 187% in the last one year. BioNTech has climbed 29.33% in its year-to-date record and has surged by 22.08% over the past three months. In addition, BNTX has gained nearly 9% over the past month.

On the other hand, Pfizer has been declining. Except for a 0.86% gain over the last three months, the company has recently been recording losses. Currently, Pfizer is down 0.38% to $36.43 in premarket trading.

Business News, Market News, News, Stocks

Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

Source link

Leave a Reply

Your email address will not be published.