Investor Alert

Europe Markets

Nov. 16, 2020, 7:27 a.m. EST

European stocks and Dow futures jump on vaccine news, recovery hopes

By Steve Goldstein

European stocks climbed Monday, helped by data showing the effectiveness of another vaccine and signs the Asian economic recovery is accelerating.

Up 5% last week after early data from U.S. drugmaker Pfizer (NYS:PFE) and German partner BioNTech’s (NAS:BNTX) coronavirus vaccine showed it was 90% effective, the Stoxx Europe 600 (STOXX:XX:SXXP) surged 1.4%, after Moderna (NAS:MRNA) said its coronavirus vaccine candidate was more than 94% effective.

Futures on the Dow Jones Industrial Average (CBT:YM00) rose 513 points.

The French CAC 40 (PAR:FR:PX1) , German DAX (XEX:DX:DAX) and U.K. FTSE 100 (FTSE:UK:UKX) extended gains after the Moderna news. Hard-hit European companies such as cruise operator Carnival (LON:UK:CCL) and International Airlines Group (LON:UK:IAG) jumped.

The recovery in the world’s number-two economy seems to be accelerating, with China’s industrial production jumping 6.9% in the 12 months to October and retail sales rising 4.3%. Japan’s third-quarter gross domestic product rose a stronger-than-forecast 5% in the third quarter. China and Japan also were among the signatories to the Regional Comprehensive Economic Partnership, a free-trade pact covering 15 key Asian countries apart from India.

U.S. hospitalizations for COVID-19 reached a record high on Sunday, according to data from the COVID-19 project, as various regional restrictions begin to kick in. U.K. Prime Minister Boris Johnson, who has suffered from COVID-19 before, is now self-isolating after meeting a member of parliament who contracted the virus, though he is not reported to be showing any symptoms. News that the Biden administration didn’t endorse a national lockdown proved supportive for stocks.

It is also a critical week for negotiations between the U.K. and European Union on a trade deal, as current terms expire at the end of the year.

BBVA (MCE:ES:BBVA) (NYS:BBVA) soared 19% after agreeing to sell its U.S. operations to PNC Financial Services (NYS:PNC) for $11.6 billion. BBVA said PNC paid more than what any of the analysts covering the Spanish bank valued its U.S. operations.

The news sent Banco Sabadell (MCE:ES:SAB) up 20%, as it helped to rekindle previous speculation BBVA could buy it. Banco Santander (MCE:ES:SAN) (NYS:SAN) rose 5%.

Vodafone Group (LON:UK:VOD) (NAS:VOD) rose 3%, as the mobile-phone operator reported a 1.9% decline in its half-year adjusted earnings before interest, depreciation and amortization, on a 2.3% drop in revenue. Vodafone maintained its dividend and reiterated its free cash flow and Ebitda guidance.

Unibail-Rodamco-Westfield (AMS:NL:URW) shares jumped 17%, after replacing its chairman with a director who was critical of the commercial-real-estate company’s strategic plans. A capital-raising plan was rejected by shareholders last week.

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