Europe open: Shares get shot in the arm from AstraZeneca Covid vaccine news

European shares were higher at the start of Monday’s session on more Covid-19 vaccine news.

The pan-European Stoxx 600 index was up 0.83%, driven by news from AstraZeneca that its vaccine, developed along with the University of Oxford, could be around 90% effective under one half dose.

All major bourses were higher and US futures showed the Dow opening 200 points higher.

Despite the news, AstraZeneca shares were 1.62% lower, with investors unimpressed by vaccine efficacy rates were lower than those of rivals Pfizer and Moderna.

“At a glance the headline from the University of Oxford trial seems a tad disappointing. The study showed an average 70.4% efficacy compared to the 90% and 95% of the Pfizer and Moderna preparations respectively,” said Spreadex analyst Connor Campbell.

“However, dig into the numbers and things look brighter – a half dose produced 90% efficacy when followed by a full dose at least once month later. Two doses at least one month apart, on the other hand, saw 62% efficacy, hence the average of 70.4%.”

The positive news spilled over to travel and leisure stocks, with TUI up 8.3%, easyJet 5.35% and International Airlines Group almost 4%.

Oil producers were also higher, boosted by a rise in crude, with Repsol, BP and Shell all higher.