JP Morgan: Vaccine announcement saw this year's laggards gain the most

JP Morgan: Vaccine announcement saw this year's laggards gain the most

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Progress towards a vaccine for Covid-19 has sparked a rotation in markets.

Having lagged for most of this year, global value stocks recorded their strongest day on record versus global growth stocks following the news that the vaccine candidate from Pfizer and BioNTech was found to be more than 90% effective. Significant uncertainties remain, including around the duration of protection, the extent to which the vaccine limits onward transmission, the logistical challenges around production and distribution, and levels of take up across the population. Yet with the news of an effective vaccine and the potential for other trials to also deliver positive results, for markets there is now light at the end of the tunnel. As we move towards 2021, the stage is set for a more balanced return trajectory – by sector, by style and in turn, by region.

MSCI World sector performance, % total return

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Source: MSCI, Refinitiv Datastream, J.P. Morgan Asset Management. Data as of 11 November 2020.