Growth, value stocks are largely pricing in vaccine hope, says UBS

The vaccine may induce a serious frontloading of the rally before logistical challenges or slower growth normalisation begins to bother markets, says UBS

Global growth and value stocks are pricing in the development of a vaccine to combat the Covid-19 pandemic, says a November 10 note by UBS.

"Value stocks are now pricing in 60 – 70 per cent possibility of a vaccine, while Growth stocks are at around 85 per cent. US Growth stocks are pricing in the most hope of normalisation, while European and US Value stocks are pricing in the least, and therefore should have more upside potential," analysts at UBS wrote.

Pfizer's announcement earlier this week that its Covid-19 vaccine, which is still under development,