How Covid-19 Vaccine Rollouts Will Pump Through Global Markets
- Date: 20-Jan-2021
- Source: The Wall Street Journal
- Sector:Healthcare
- Country:Middle East
How Covid-19 Vaccine Rollouts Will Pump Through Global Markets
The rollout of Covid-19 vaccines is finally under way. Markets are already showing that the speed of local rollouts matters quite a bit—but global vaccination campaigns will also ripple through financial markets in some unexpected ways, including in places that have successfully controlled the disease.
It is difficult to pin down the precise impact of vaccine deployment so far. In the past month, while the MSCI All Country World Index is up by 3.3%, benchmark equity indexes in Israel and Dubai, two places with among the fastest vaccine rollouts globally, are up by around 8% apiece. Clearly vaccines aren't everything though: The Bahrain All Share Index is down a little more than 2% over the same period, despite a rapid rollout.
Markets where vaccines are rolled out rapidly may be beneficiaries, but the greater impact may be on the laggards. Hospitality, travel and bank stocks are key areas on which to concentrate.
The MSCI World Banks Index has clearly been a major beneficiary of vaccine-related good news
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