Covid-19 vaccines could be imminent! How I think this affects the UK stock market

July 5, 2021 0 Comments

first_imgCovid-19 vaccines could be imminent! How I think this affects the UK stock market I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Kirsteen Mackay Stock markets are rallying this month for a variety of reason, but primarily in response to the exciting prospect of effective Covid-19 vaccines. Two prominent US pharma companies have seen their vaccines sail through phase 3 trials with 90% and 95% success rates. That’s wildly more impressive than scientists previously expected, and hope has been well and truly ignited.Covid-19 vaccines boost the FTSE 100The companies both make their vaccines using technology called mRNA, which programs the body’s cells to produce antigens and generate immunity. It’s very exciting news as the year-end approaches and stock markets globally are rejoicing.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The UK government has reportedly ordered five million doses of Moderna’s 95% effective vaccine, along with 40m doses of Pfizer/BioNTech’s 90% effective vaccine. Most people will need at least two vaccine shots each, and the country has a population of roughly 66m people. This means the government needs to order a lot more to be in a position to accommodate everyone.There are also further hurdles ahead. Firstly, the vaccines must be approved by the US Food and Drug Administration (FDA). They also need to be stored at freezing temperatures, making distribution and manufacturing at scale tricky. Dosing must follow a strict regime which also varies between vaccines. Finally, the frequency of vaccination is unclear yet, but it’s highly likely that we will require recurring vaccines. In any case, a first round of vaccines is a step in the right direction.Stock market volatility aheadAll this points to volatility ahead in the UK stock market. While the positive sentiment is very welcome after a year that’s proved dismal for many companies, it seems we’re not at the finish line quite yet.Pfizer believes it can produce enough vaccines for between 600m and 700m people before the end of 2021. That’s not enough to get 70% of the world’s population inoculated, so vaccines from multiple manufacturers are necessary. Hope remains for the AstraZeneca/Oxford vaccine, which follows a different design. Pressure is mounting on this one because the UK government has ordered 100m doses. Results are due in the next few weeks. Meanwhile, AstraZeneca’s share price is slipping.Buy cheap shares and holdThe continued volatility provides an opportunity for savvy investors to buy cheap stocks and hold them for the long term. Positive sentiment returning to the UK stock market after months of negativity is reassuring to long term investors.The main stocks soaring in response to the news were in the sectors hardest hit by the pandemic’s lockdowns. Travel, entertainment, oil, airline, and industry stocks all rallied on hopes that demand for their products and services will soon return. During last week’s rally and yesterday’s bounce, clear winners were Rolls Royce, Cineworld, Whitbread, and IAG. Some have slipped back today. Personally, I think Rolls-Royce is too big to fail, but I’m bearish on Cineworld and Whitbread. Nevertheless, all of them demand a degree of caution. Cheap shares I like in the FTSE 100 include BAE Systems, Vodafone, GlaxoSmithKline, and Glencore.With virus cases still rapidly increasing, investors should not be complacent. The vaccine news is very welcome, but UK citizens are unlikely to receive it until springtime at the earliest. Therefore, risk remains in the UK stock market until we bring the virus under control. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kirsteen owns shares of BAE Systems and GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Kirsteen Mackay | Tuesday, 17th November, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997”last_img read more