The US Food and Drug Administration on Wednesday authorised Pfizer’s Paxlovid pill, the first anti-Covid-19 treatment pill to be authorised in the country. It will be used to treat high-risk patients with moderate to severe disease within five days of symptom onset. Pfizer said it was ready to commence delivery of the pill immediately.

The latest news comes on the back of seperate positive pandemic developments. Namely, a recent study released by Scottish scientists showed Omicron infection to be associated with about a two-thirds reduced risk of hospitalisation, a conclusion in fitting with similar studies conducted in South Africa.

Market Reaction

Markets have switched from trading in a quite a subdued fashion earlier in the session to more of a risk on mode in recent trade, with stocks, crude oil and risk sensitive currencies all gaining in recent trade. The aforementioned positive pandemic newsflow is likely contributing to a sense of optimism that while Omicron is a threat to the global economy, it does not look set to deliver a lasting blow to growth, given its lesser severity, high vaccination rates in developed countries and the upcoming rollout of effective treatments. 

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