What’s most important to markets right now? Vaccines

The news last week that Johnson and Johnson’s vaccine caused blood clots sent a shiver down markets mid-week. However, once the headline was digested it was realized that there were still vaccine alternatives to replace J&J’s even if there was a delay in the rollout.

White house confirms vaccine coverage

This was underlined by White House COVID Coordinator Zients who stated last week that there is plenty of vaccine supply in the system, even without J&J’s COVID-19 vaccine and that the US Gov’t is doing everything it can to accelerate the Pfizer and Moderna vaccines.

Ok, panic over. The dip was bought on the headline last week.

However, it is interesting to note that in stark contrast to the inflation fears, which came to nothing last week, the market remains laser-focused on the vaccine rollout. So, right now, vaccines matter most.

One interesting headline from last week that could be lost in the mix is the fact that Novavax will be taking part in an Oxford University study comparing mixed COVID-19 vaccine combinations from different manufacturers. The idea of the study is to explore any potential possibility there is of mixing doses. This will be extremely helpful if a ‘mix&max’ combination is possible and should help speed up the vaccination process and reward manufacturers who can supply the most quickly. One report to look out for as it could give risk assets a positive boost if the study proves positive. The current levels of people who have received at least one vaccine can be seen here below. 

The key impact of any significant delay/problem in the vaccination program would be a sell-off in equity markets.

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