Stock markets get boost from vaccine hopes

Global stock markets get a shot in the arm from hopes for a coronavirus vaccine on Wednesday, with the outlook for more US financial stimulus adding to the brighter mood.

Optimism was sparked by US biotech firm Moderna saying the final stage of human trials for a COVID-19 vaccine would start at the end of the month, after a report said first stage tests had been a success.

The news follows an announcement from Pfizer and BioNTech that two of four candidates for treatment had received “Fast Track” designation from US officials.

European markets were as much as two percent higher at the close, outperforming the Dow on Wall Street which had retreated from opening gains by the late New York morning.

Providing added support were signs that the US might add to its stimulus after reports said top Republicans were reconsidering their opposition to it.

Trillions of dollars pledged by the US and other governments and central banks around the world have been a key driver of the rally in stock markets from their March lows — but one that is weighing on the US currency.

Strong US industrial output numbers released shortly before the New York opening bell added to the better mood on trading floors.

— AFP