Australian fund managers and analysts have warned that impending developments with leading COVID vaccine candidates could cause more volatility in global markets already reeling from Donald Trump's coronavirus diagnosis and uncertainty about the US election result.
Cross asset investment specialist at Fidelity International Anthony Doyle said any vaccine approval or significant data updates would have "market moving significance on the day and contribute to heightened volatility".deploying a vaccine At the start of July the benchmark S&P/ASX 200 rallied above the 6000 mark, gaining 1.7 per cent on a positive update from Pfizer about its project. On September 9, the local sharemarket dropped more than 2 per cent after the market digested the news that theafter an adverse reaction from a participant.
Investors should be prepared for major data releases to continue to have an impact on markets, Ms Burns said. "Good news and bad news on from those data releases will drive markets. Look for relative out- or under-performance of cyclically exposed stocks on positive or negative news."