Shares of Zoom Video Communications (NASDAQ:ZM) fell sharply on Monday

By | November 17, 2020

Moderna on Monday announced that preliminary details showed its coronavirus vaccine was greater than 94 % effective at stopping Covid 19.

In Europe, focus is on the perspective for the EU’s near-term economic restoration following Poland and Hungary blocked the adoption of the 2021-2027 budget as well as retrieval fund by EU governments on Monday.

The pan-European Stoxx 600 hovered close to the flatline in early trade, with travel stocks shedding 1.1 % as well as utilities including 0.4 %.

European stocks closed much higher on Monday as hopes for a strong coronavirus vaccine were more boosted by news that is positive from Moderna, which announced that preliminary details showed the coronavirus vaccine of its was greater than 94 % effective at preventing Covid-19.

The announcement followed similarly good news previous week from Pfizer and BioNTech’s late stage coronavirus vaccine trial that showed their vaccine was more than 90 % effective.

The Moderna information boosted stocks on Wall Street and markets in the Asia-Pacific region over night, with shares largely rising in Tuesday’s trading consultation. But U.S. stock futures had been in unwanted territory on Monday night despite 2 of the three major market benchmarks closed at record levels.

In Europe, focus is actually on the outlook for the EU’s near term economic recovery after Hungary and Poland blocked the adoption of 2021-2027 budget and recovery fund by EU governments on Monday. They did this simply because the budget law features a clause which makes access to cash conditional on respecting the principle of law.

Business earnings stay on the agenda, with EasyJet reporting on Tuesday this revenue fell greater than 50 % in the year to the end of September since the coronavirus pandemic soil the travel sector to a stop.

Intermediate Capital saw the shares of its climb 5.6 % to direct the Stoxx 600 in early trade after posting a twenty nine % rise in first-half profit ahead of tax, while from the other end of the European blue chip index, local mall operator Klepierre slid greater than 4 %.

Shares of Zoom Video Communications (NASDAQ:ZM) fell sharply on Monday, together with the stocks of a lot of other high-flying work-from-home businesses. The provider of a clip collaboration platform saw its shares fall more than seven % at some point inside the trading day. As of 11:45 p.m. EST today, nonetheless, the loss had been trimmed to 3.7 %.

The stock’s decline was likely driven largely by news flash that Moderna’s coronavirus vaccine was discovered to be about 95 % effective within a clinical trial with at least 30,000 volunteers. Zoom stock’s sell-off suggests some investors think shares may just have a hit when efficient vaccines are distributed, helping other countries and the U.S. return to more normalcy.