Contest Trader

Don't miss the chance to cash-in prizes totaling

$10.000
Register here for the Ultimate demo trading competition

AstraZeneca took out the wind from everybody’s sails – Market Analysis

AstraZeneca took out the wind from everybody’s sails – Market Analysis

All hope seems lost as AstraZeneca’s vaccine brings out adverse effects in test subjects

After the sell-off of the last days, the market seems to have taken a break

However, nothing has changed from a fundamental perspective; even the pandemic situation had had a setback when it became known that AstraZeneca's vaccine had unwanted adverse effects in one of the people they are testing on. One of the main factors for a return to normality is the achievement of an active vaccine.

Politicians and some pharmaceutical companies have gotten into an unprecedented race to achieve a successful vaccine in terms of time well below average in these cases. This news of harmful side effects of one of them can cause expectations to wane and, therefore, hinder the stock markets' advance.

What we are seeing is only a consolidation of the sharp declines experienced recently with no solid reason to anticipate a return to highs.

As shown in the TECH100 chart, after stopping its decline in the central support zone located around the 11000 zone, the index is consolidating in a bearish flag pattern that would lower below the approximate level of 11150.


The Dollar has continued its upward correction, mainly driven by the fall of the British Pound after the considerable concern for the market that implies the British prime minister's intention to breach Brexit's previous agreements, which would lead him to break rules of international law.

EUR/USD has also followed the bearish path of GBP/USD, given its direct correlation with this pair, and has gone below its intermediate supports of 1.1780 to 1.1752., breaking the uptrend line that began at the end of July.


The next and most important support level is in the area around 1.1713, below which it makes its way to more severe losses until the 1.1450-1.1500 area with its intermediate support at the 1.1621 area.

In this sense, tomorrow is going to be crucial for the future development of the Euro

No change in monetary policy is expected at the ECB meeting. Still, it is highly likely that the economic future's assessment will be more pessimistic after the increase in pandemic cases in Europe and the decline in some high-frequency economic indicators.

This in itself would be negative for the Euro since it would make the market anticipate new cuts in interest rates or increases in the amounts of its asset purchase program. More important than this would be any mention by Christine Lagarde opposing an excessive strength of the Euro.

This would cause a sharp and rapid movement lower for the Euro. Market participants will be very vigilant about this possibility.

Esta información/estudio preparada por Miguel Ruíz (“el analista de estudios”) no tiene en cuenta los objetivos específicos de inversión, la situación financiera o las necesidades particulares de una persona. El analista de estudios es, principalmente, responsable del contenido de este informe de estudio, en parte o en su totalidad, certifica que los puntos de vista sobre las compañías y sus valores expresados en este informe reflejan con exactitud sus puntos de vista personales, y como consecuencia, toda persona que actúe basándose en ellos lo hace bajo su propio riesgo.

El estudio proporcionado no constituye los puntos de vista de JME Financial Services (Pty) Ltd., ni es una invitación a invertir con JME Financial Services (Pty) Ltd. El analista de estudios certifica, además, que ninguna parte de su remuneración ha sido, es o será directa o indirectamente relacionada con recomendaciones o puntos de vista específicos expresados en este informe.

A partir de la fecha en la que se publique el informe, el analista de estudios y su esposo/a o familiares que dependen financieramente de dicho analista, no mantendrán intereses en los valores recomendados en este informe (“como “intereses” se incluyen la titularidad directa o indirecta de los valores).

El analista de estudios no está contratado por JME Financial Services (Pty) Ltd. Le animamos a buscar asesoramiento con un consejero financiero independiente con respecto a la idoneidad de la inversión, en virtud de otra participación separada, cuando considere oportuno que es conforme con sus objetivos específicos de inversión, su situación financiera o, sus necesidades financieras particulares antes de comprometerse a invertir..

Las leyes de la República de Sudáfrica regirán cualquier reclamación relacionada o que surja de los contenidos de la información/estudio proporcionado.