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While the new strain of Covid-19 discovered in the United Kingdom would be 70% more contagious than the original version of the virus, it should not call into question the effectiveness of the vaccines developed so far. As a result, luxury goods stocks on the stock market seem to have held up well, both in France and internationally.
On Monday, December 22, the European Medicines Agency validated the commercialization of the vaccine developed by Pfizer and BioNTech, saying there was “no evidence” that the vaccine would not also protect against the new variant of Covid-19. In the market, operators remain extremely attentive to information about the evolution of the virus. “This is the kind of volatility that can be expected as long as the effect of the vaccines is not widespread,” said Neil Wilson, senior analyst for Markets.com.
But these traders seem to be focused on the worrying news. “Despite the agreement between Republicans and Democrats in the U.S. Senate paving the way for the adoption of a $900 billion stimulus package […] it is obviously the violent mutation of the coronavirus that is worrying,” emphasized Mirabaud‘s investment director, John Plassard, in his morning note.
As a result, the CAC 40 closed its first session of the week down 2.43% to 5,393.15 points, the lowest closing level since 13 November. Certain “cyclical” sectors such as banking, aeronautics, automobiles and real estate experienced the largest falls in value. The same is true for oil stocks and those linked to tourism or travel at a time when France is suspending its flights from the United Kingdom.
Alongside the technology and health sectors, the luxury goods industry is therefore among those spared from the recent announcements about the epidemic. Indeed, luxury values are holding steady, while Kering company is extending its share buyback program, authorized by the General Meeting of June 16, 2020. Thus, this global luxury group, which includes emblematic brands – Gucci, Saint Laurent, Balenciaga – has decided to acquire an additional 75,000 shares, representing approximately 0.06% of the company’s share capital as of December 15, 2020. These shares would be allocated to cover bonus share plans for employees.
On Wall Street, Tesla is the company with the best balance sheet and has access to the S&P 500, of which it will represent more than 1%. Since January, the share price of the American carmaker has soared to more than 680%, making Elon Musk‘s company the ninth largest market capitalization in the world, far ahead of General Motors, Ford and Fiat Chrysler. At the close of Wall Street on Thursday, December 17, this capitalization stood at $606 billion.
In Switzerland, on the other hand, the new variant of the virus frightened the Zurich stock exchange, where the SMI fell by 2.07% to 10,300 points. Among the companies that suffered from the recent news, Richemont was down by 2.8% and Swatch by 2.1%.
“As we enter the shortened year-end vacation season, markets are under pressure from the new variant of the coronavirus discovered in the UK, which is prompting strict lockdown measures across the country,” said Art Hogan of National Holdings, “The emergence of a mutation of the virus threatens to spoil the end of the year as investors have launched the countdown to the conclusion of a chaotic 2020,” he concluded.
Read also > PARIS STOCK EXCHANGE : KERING IS LAGGING BEHIND THE LUXURY
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While the new strain of Covid-19 discovered in the United Kingdom would be 70% more contagious than the original version of the virus, it should not call into question the effectiveness of the vaccines developed so far. As a result, luxury goods stocks on the stock market seem to have held up well, both in France and internationally.
On Monday, December 22, the European Medicines Agency validated the commercialization of the vaccine developed by Pfizer and BioNTech, saying there was “no evidence” that the vaccine would not also protect against the new variant of Covid-19. In the market, operators remain extremely attentive to information about the evolution of the virus. “This is the kind of volatility that can be expected as long as the effect of the vaccines is not widespread,” said Neil Wilson, senior analyst for Markets.com.
But these traders seem to be focused on the worrying news. “Despite the agreement between Republicans and Democrats in the U.S. Senate paving the way for the adoption of a $900 billion stimulus package […] it is obviously the violent mutation of the coronavirus that is worrying,” emphasized Mirabaud‘s investment director, John Plassard, in his morning note.
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While the new strain of Covid-19 discovered in the United Kingdom would be 70% more contagious than the original version of the virus, it should not call into question the effectiveness of the vaccines developed so far. As a result, luxury goods stocks on the stock market seem to have held up well, both in France and internationally.
On Monday, December 22, the European Medicines Agency validated the commercialization of the vaccine developed by Pfizer and BioNTech, saying there was “no evidence” that the vaccine would not also protect against the new variant of Covid-19. In the market, operators remain extremely attentive to information about the evolution of the virus. “This is the kind of volatility that can be expected as long as the effect of the vaccines is not widespread,” said Neil Wilson, senior analyst for Markets.com.
But these traders seem to be focused on the worrying news. “Despite the agreement between Republicans and Democrats in the U.S. Senate paving the way for the adoption of a $900 billion stimulus package […] it is obviously the violent mutation of the coronavirus that is worrying,” emphasized Mirabaud‘s investment director, John Plassard, in his morning note.
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