Markets skyrocketed as Oxford Business Vaccine Launch begins

DATA FLASH: The Spanish manufacturing sector grew slower than previously thought in December.

The final manufacturing PMI reading was 51.0, which is lower than analysts’ expectations for 52.8. However, that is higher than the 49.8 registered in November.

A reading greater than 50 expansion signals.

Here’s a photo of Brian Pinker, who has become the first person in the world to receive the Oxford / AstraZeneca vaccine, which will no doubt be making the news this morning.

AstraZeneca shares are not among the top performers on the FTSE 100, but the stock is still up 1.7% this morning.

It occurs when the first dose of the vaccine he created with the University of Oxford was administered to a patient this morning. It is part of the UK’s largest vaccination efforts:

AstraZeneca has said that it will not benefit from the vaccine. That promise has lowered interest from investors looking to bet on companies involved in Covid recovery efforts.

The major indices are off to a strong start, all up around 1% at the start of trading:

• FTSE 100 is up 1.4%
• FTSE 250 is up 1%
• Germany’s DAX rose 1.2%
• France’s CAC 40 rose 1.1%
• The IBEX in Spain rises 1.3%

Good morning and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and business.

A recent spike in Covid cases in countries like the UK, the US, and Japan has failed to curb market enthusiasm on the first full trading day of 2021.

It comes as investors pin their hopes on the distribution of Covid vaccines, including the Oxford / AstraZeneca jab, which will begin use in the UK today.

The broader measure of Asia-Pacific stocks (outside of Japan) hit a record high after rising 1.2% in trading on Monday.

Europe’s leading indices will follow suit, helped by the fact that Brexit uncertainties, to which most of the market fluctuations outside of Covid have been attributed for the past 4.5 years, are now in the mirrorRearar view mirror, after the UK formally left the block on New Years Eve.

Across the pond, Wall Street is also preparing for a strong start to the year with DowSAP&P 500 and Nasdaq futures rising around 0.3%, hitting new all-time highs.

We will also keep a close eye on oil prices as OPEC members meet today. The group of oil-producing nations is reportedly considering a production cap in February to further support prices hit by a drop in demand during the pandemic. The world’s benchmark index, Brent crude, is currently up 2.2% to aroun$5252.94 a barrel.

We also await confirmation of how the manufacturing sector fared in the UK and continental Europe in December. China’s own manufacturing PMI data released overnight showed slightly weaker growth, falling to 53.0 in December versus expectations for a reading of 54.7 and 54.9 in November. This was attributed to weaker export growth due to modest external demand. However, a reading above 50 still indicates expansion.

The agenda

• 8.15 a. M. GMT: Spanish Manufacturing PMI (December, final)
• 8: 45-8.55 a. M. GMT: Italian, French and German Manufacturing PMI (December, Final)
• 9.00 a.m. M. GMT: Eurozone Manufacturing PMI (December, Final)
• 9.30 a. M. GMT: UK Manufacturing PMI (December, Final)
• 9.30 a. M. GMT: UK Mortgage Approvals, Net Home Loans and Consumer Credit (November)
• 2.45 pm GMT: US Manufacturing PMI (December, Final)