As the day after Thanksgiving, today is Black Friday in the United States and a massive increase in shopping is expected. However, this year, due to the coronavirus pandemic, the bulk of the shopping will most likely happen online. Retailers like Amazon, who has been having sales since October, are in the best position to do well this holiday season.
US stock indices also continue rather optimistically today, helped by optimism about 2021. The major drivers behind the improvement in market sentiment are the official start of the transition in the US, whereby President-elect Joe Biden was allowed the funds to get his team settled, and the hopes of several working vaccines becoming available soon.
A stock to keep an eye on is AstraZeneca. The company announced its Covid-19 vaccine is 90% effective this week but revealed that this success rate was found in a group of test patients that were accidentally given a lower dose than everyone else participating in the trial. The company’s CEO stated that AstraZeneca will run another clinical trial for the lower dosage specifically, but is still pushing ahead with its plan to get the drug approved before the end of 2020.
Both Moderna’s and Pfizer’s vaccines have performed better in clinical trials so far, but are more expensive, and in the case of Pfizer, more difficult to supply, which means that a huge portion of the world, especially in developing or underdeveloped countries, is relying on AstraZeneca.
Meanwhile, Donald Trump stated that he will step down as President if the Electoral College formally backs Joe Biden. Biden officially gathered enough votes to win, but the Electoral College still needs to finalize the results on December 14.
The news had a very different tone across the Atlantic. The United Kingdom’s economy is emerging as a growing source of concern to investors. According to the latest report by the UK’s Finance Minister, the country’s accounts are in their worst state since the 1700s. With the coronavirus pandemic and this year’s prolonged furlough scheme, the UK has borrowed close to 20% of its GDP, which is a record high.
Despite all of this, the British pound has remained strong. Sterling is supported by hopes that the United Kingdom and the European Union will agree on a trade deal after all.
