While we can look back on the coronavirus pandemic as a downright human crisis, it is the socio-economic impact of the virus that can ultimately prove extremely harmful.
According to estimates by the International Monetary Fund (IMF) The world economy is expected to shrink by 4.4% until At the end of 2020, the average unemployment rate in industrialized countries fell from 5.2% to 8.5% at the beginning of the fourth quarter.
On the flip side, however, developing a potential vaccine for the coronavirus has the potential to provide a long-term ecOnomic Boost while improving sentiment in a number of financial markets.
How has the vaccine developed so far?
As you can imagine, efforts have been made around the world to work with the United States to develop a coronavirus vaccineReading a number of countries including China, Russia, India, Australia, Germany and Great Britain.
Efforts in the US were particularly concerted, and the so-called Operation Warp Speed was launched in late March (after the virus had turned into a virus) global pandemic). From the start, the project was tasked with delivering 300 million doses of safe and effective Covid-19 vaccines by January 2021.
US firms have also participated in some high profile collaborations, the most recent of which is has arguably manufactured the world's first clinically proven and effective vaccine.
In particular, the New York-based Pfizer and the German company BioNTech have come together to create a milestone treatment that can Prevent 90% of people from getting Covid-19The vaccine has so far been tested on 43,500 in six countries around the world.
How did the markets react to this and in the course of 2020?
As you can imagine, the world's financial markets were booming when this news was announced, and stocks were particularly strong.
Generally speaking, The FTSE 100 jumped almost 5%wWhile global companies like the Dow Jones and the S&P 500 saw similar (and in some cases record-breaking) gains, market sentiment rose.
Interestingly, even stocks in the hardest-hit industries turned their fate around because of the announcement. Airlines, hotels and similar stocks rose as much as 53% after being largely decimated by the pandemic.
Of course it continuesA trend that prevailed throughout the summer, with a potential vaccine proving to be a catalyst for continued market volatility through fiscal second and third quarters.
Stocks and currencies in particular rose amid speculationA vaccine approached and fell again after such rumors were denied or dismissed as inaccurate.
As a result, dealers had to factor in potential vaccine updates and the spread of the disease in their Decemberadditionally over the past six months Trading with classic data sets such as real-time news and the economic calendar.
This trend is sure to continue in the fourth and fourth quartersuntil 2021, but there is There is no doubt that the confirmation and distribution of a viable vaccine would generate significant market growth.