Pfizer vaccine news spurs optimism - reaction

Pfizer's announcement that its Covid-19 vaccine candidate is 90% effective is the biggest scientific step forward since the virus emerged in late 2019.

Stock markets jumped after the US drug company and its German partner BioNTEch said they would soon be ready to apply to the Food and Drug Administration for emergency use authorisation.

Here is a selection of reactions to the news:

Professor John Bell, Regius professor of medicine at Oxford University (asked if life would be returning to normal by spring 2021): "Yes, yes, yes. I'm probably the first guy to say that but I will say it with some confidence. It rolls the pitch for other vaccines because I can't see any reason now why we shouldn't have a handful of good vaccines available. It's a major step."

Jefferies analysts: "There are three steps to overcome: efficacy, distribution and acceptance. But considering clear imperatives from governments, employers and schools to get vaccines approved and injected as rapidly as possible, we think the markets will adopt a 'shoot first, ask questions later' approach. The vaccine will offer the market a certainty that (new)-normality can resume, at some point. When that point is probably doesn’t much matter from a valuation perspective."

Alastair George, chief investment strategist at Edison Group: "While it will still be some time before social restrictions can be lifted, investors are skipping to the end of the pandemic movie. With a favourable climax to the US presidential election behind us, 2020's risks have diminished significantly. In our view, the market rally is firmly backed by the rapidly improving outlook for 2021."

Nigel Green, chief executive of deVere Group: "The vaccine development reports are, obviously, an important step in the right direction. However, I suspect the markets – which are already in a bullish mood due to the incoming Biden administration – are overthinking the positive vaccine news. They are being premature in their buoyancy. There’s a long road ahead still. We will find out on the third week of November then as we wait to see if the vaccine can be approved or not.”

Chris Whitty, chief medical officer for England: "Preliminary news that the Pfizer/BioNTech vaccine is effective demonstrates the power of science against Covid. We must see the final safety and efficacy data, but it is very encouraging. It is essential we continue to suppress Covid, but it is a reason for optimism for 2021."

Neil Wilson, chief market analyst at Markets.com: "A working vaccine is positive for cyclicals and value – the reopening trade essentially. The dichotomy in the market is stark: the biggest gainers in a frantic session today are among those stocks worst hit by the pandemic - travel and leisure chiefly, whilst Covid winners are doing poorly. We should be careful in overreacting - but it’s clear the market is forward looking and pricing in recovery in a number of beaten-down areas next year."

Paul Craig, portfolio manager at Quilter Investors: "This vaccine is not a silver bullet. Many of the issues facing developed economies now are structural and a vaccine is not going to prevent the large scale unemployment we are likely to see as a result of the lockdowns of earlier this year. For now, however, it is a positive and the companies benefiting certainly represent a ‘reopening trade’ of some sorts."