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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.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.