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Weekly financial market overview 09.11.-15.11.

News - November 16, 2020



Konstantins Goluzins, CFA

Head of Asset Management
Phone.: (+371) 6700 0456
E-mail: trust@bib.eu


Main events of the previous week

At the beginning of the previous week, it became known that scientists have managed to develop the first truly effective vaccine. It was the developers of Pfizer and BioNTech who succeeded in this. 43,500 people from six countries took part in clinical trials and they did not have any side effects. The developers plan to apply for an emergency certification procedure so that the new vaccine could be used by the end of November. This vaccine, together with the latest therapies, is considered as the best opportunity to end the limitations that have been imposed this year to stop the spread of coronavirus. About a dozen different vaccines are currently in the final stage of clinical trials, but this is the first one that has proven to be highly effective. Clinical trials in the US, Germany, Brazil, Argentina, South Africa and Turkey have shown that 90% protection against coronavirus was achieved 7 days after the second injection. Pfizer is confident that they will be able to create 50 million doses of vaccine by the end of the year, and by the end of 2021 - about 1.3 billion. Unfortunately, there also are some difficulties, since the new vaccine must be stored at a very low temperature - 80 ° C. The duration of its action is also questionable. In addition, the development companies have not yet provided data on the effectiveness of the vaccine for different age groups. So far, the data presented for the vaccine cannot be considered complete. It is based on the treatment results of the first 94 volunteers diagnosed with Covid-19. More accurate data on its effectiveness will appear after all the results are processed. Developers say they will have enough information by the third week of November to apply to regulatory authorities for formal approval of the vaccine. Until then, national vaccination campaigns cannot start.

Economic data

US. Consumer price index in October remained at the level of September, while the annual inflation rate was 1.2%. The growth of the core inflation rate excluding food and energy in October amounted to 1.6% yoy.

The number of initial jobless claims for the week was registered in the amount of 709 thousand, which is 48 thousand less than the week before and 26 thousand less than predicted by analysts.

Eurozone. According to the recalculation, GDP in the second quarter grew by 12.6% compared to the first quarter of 2020, while in the second quarter the decline was 4.4% relative to the second quarter of 2019.

China. The consumer price index in October decreased by 0.3% versus September, while the annual inflation rate was 0.5%.

Key events this week

  • On Monday, China will report on retail trade, industrial production and labor market conditions in October.
  • On Tuesday, retail and industrial production for October will be reported in the US.
  • On Wednesday, the final data on inflation in October will be known in the Eurozone, and the change in oil reserves for the week will become known in the US.
  • On Thursday, the US will report on home sales in the primary market, as well as the number of initial jobless claims for the week.

The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

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