Delay in vaccinations jeopardizes the stock market rally

The increasing number of coronavirus cases and the slowness in the immunization campaign put the rally of November 9 at risk

Healthcare sector leaves opportunities after being overshadowed by Pfizer's vaccine

The largest vaccination campaign in history has already started in 30 countries around the world and has achieved the milestone of giving the first injection of the coronavirus antigen to more than 12.3 million people, according to data compiled by Bloomberg.

Although, in almost all those countries the vaccination rate is being much slower than expected (Except for Israel, which has already vaccinated one million people, which is more than 10 percent of its population).

Thus, China has vaccinated 4.5 million people (of the 1,400 million that make up its total population) and the United States to 4.3 million (of a total of 328 million).

In Europe, things are still slower because, except for the United Kingdom (with 947,000 vaccinated people) the process started later.


Specific, Germany leads the process in the European Union, with 238,000 people vaccinated in one week.

In Spain, things are even worse, although there are no aggregated data at the level of the entire territory.

By communities, Madrid only managed to supply 5% of the planned injections in the first week after some setbacks such as the lack of syringes with the recommended amount of product.

And the challenge is enormous because, if you want to end a pandemic that has killed almost two million people globally, it would be necessary to vaccinate a significant part of the 7.8 billion people who inhabit the planet.

An obstacle for bags

But, beyond the health and economic problem that this entails, it could be an obstacle to the good performance of the stock markets globally.

The markets are experiencing a rally that began on November 9 when the high effectiveness of Pfizer’s vaccine was known and expectations of a return to normality were triggered.

“The market did not see an end and, from that moment, began to glimpse the beginning of the end,” explains Susana Felpeto, director of equities at ATL Capital.

Yes OK, slow vaccinations could slow this goal back to normal and spoiling the market’s expectation that the economy will take off starting in the spring.

The fear of a third wave

Especially if this delay in vaccinations is combined with a third wave that forces the main economies of the planet to be confined again.

“The market right now is positive and strong: But if it turned negative, it would be for that reason,” says Felpeto.

And we would be talking about a general impact, because “we are seeing an increase in the number of infections in the United Kingdom, Germany, Belgium and the United States. It is not exclusive to Spain ”, he adds.

In that sense, a new lockdown could derail the new highs reached by the S&P 500 in the United States, for instance.

In any case, this expert is positive in terms of equities for the year as a whole because she considers that the “recovery since November is not exaggerated so that the correction could be very strong”.

The increasing number of coronavirus cases and the slowness in the immunization campaign put the rally of November 9 at risk


Healthcare sector leaves opportunities after being overshadowed by Pfizer's vaccine

The largest vaccination campaign in history has already started in 30 countries around the world and has achieved the milestone of giving the first injection of the coronavirus antigen to more than 12.3 million people, according to data compiled by Bloomberg.

Although, in almost all those countries the vaccination rate is being much slower than expected (Except for Israel, which has already vaccinated one million people, which is more than 10 percent of its population).

Thus, China has vaccinated 4.5 million people (of the 1,400 million that make up its total population) and the United States to 4.3 million (of a total of 328 million).

In Europe, things are still slower because, except for the United Kingdom (with 947,000 vaccinated people) the process started later.


Specific, Germany leads the process in the European Union, with 238,000 people vaccinated in one week.

In Spain, things are even worse, although there are no aggregated data at the level of the entire territory.

By communities, Madrid only managed to supply 5% of the planned injections in the first week after some setbacks such as the lack of syringes with the recommended amount of product.

And the challenge is enormous because, if you want to end a pandemic that has killed almost two million people globally, it would be necessary to vaccinate a significant part of the 7.8 billion people who inhabit the planet.

An obstacle for bags

But, beyond the health and economic problem that this entails, it could be an obstacle to the good performance of the stock markets globally.

The markets are experiencing a rally that began on November 9 when the high effectiveness of Pfizer’s vaccine was known and expectations of a return to normality were triggered.

“The market did not see an end and, from that moment, began to glimpse the beginning of the end,” explains Susana Felpeto, director of equities at ATL Capital.

Yes OK, slow vaccinations could slow this goal back to normal and spoiling the market’s expectation that the economy will take off starting in the spring.

The fear of a third wave

Especially if this delay in vaccinations is combined with a third wave that forces the main economies of the planet to be confined again.

“The market right now is positive and strong: But if it turned negative, it would be for that reason,” says Felpeto.

And we would be talking about a general impact, because “we are seeing an increase in the number of infections in the United Kingdom, Germany, Belgium and the United States. It is not exclusive to Spain ”, he adds.

In that sense, a new lockdown could derail the new highs reached by the S&P 500 in the United States, for instance.

In any case, this expert is positive in terms of equities for the year as a whole because she considers that the “recovery since November is not exaggerated so that the correction could be very strong”.