FTSE stocks in a post covid world
Fiona Cincotta November 11, 2020 4:14 PM
The FTSE is up over 7% so far this week after Pfizer announced that its Covid vaccine candidate was over 90% effective in Phase 3 trials.

The FTSE is up over 7% so far this week after Pfizer announced that its Covid vaccine candidate was over 90% effective in Phase 3 trials.
Fortunately, there are other covid vaccine candidates which could see encouraging results announced in the coming weeks, such as AstraZenca and Moderna. In fact, there are 11 Phase 3 covid 19 vaccine trials currently running, which bodes well for more vaccines becoming available.
Rolls Royce – the aero engine maker has surged 50% in 2 days after being on a downward spiral the start of the pandemic. A vaccine would mean a rapid return to the skies for planes, restarting Rolls Royce revenue stream.
AB Foods – Primark accounts for over 50% of AB Foods revenue. Primark infamously has no online offering meaning that when it shuts it doors for lockdown there is no income entering from that business stream. Primark has warned that is stands to lose £375 million in lost earnings in this latest lockdown. A vaccine would see store permanently reopen their doors. Given that it could take some time for at the UK’s economy to recover, particularly with unemployment in the region of 7% expected by Q2 next year, Primark’s lower price point could well work in its favour.
Those UK lenders most exposed to consumer debt could benefit the most from the threat of long-term unemployment easing, in addition to reduced chances of business closures and bad loans. Whilst we have already seen the likes of Barclays stage a rebound on improved investment banking revenues, with a vaccine the likes of Virgin Money UK or Lloyds could see a more prominent rebound, HSBC could struggle to rebound in the same way given geopolitical tensions it faces between .
Energy stocks
The piece of oil tanked at the start of the pandemic, even moving into negative territory for a shot period. The price of oil has surged over 14% this week as investors focus on the improved future demand outlook in a covid vaccine world. This is overshadowing near term demand issues as more of Europe looks to lockdown and US new covid cases rise by over 100k for the 7th straight day. Tullow Oil & Premier Oil have both surged, in addition to the oil majors such as RDSA and BP.
FTSE Chart
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