Reuters
Published Nov 16, 2020 08:18
Updated Nov 16, 2020 17:30
By Devik Jain
(Reuters) - British stocks jumped on Monday as positive vaccine data from drugmaker Moderna bolstered hopes of a swift economic recovery to pre-pandemic levels, offsetting concerns over a post-Brexit trade deal with the European Union.
The blue-chip FTSE 100 index (FTSE) closed 1.7% higher, after Moderna Inc (O:MRNA) reported its experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.
Pfizer Inc (N:PFE) and German drugmker BioNTech SE (O:BNTX) made a similar announcement on Nov. 9. British drugmaker AstraZeneca Plc (L:AZN), which is yet to release results from its late-stage vaccine trials, fell 1%.
The domestically focussed mid-cap FTSE 250 index (FTMC) ended 1.8% higher, with cinema operator Cineworld Group Plc (L:CINE) jumping 13.5% to the top of the index. The wider travel and leisure sub-index (FTNMX5750) gained 3.2%.
"This (vaccine news) is more evidence that an end to the pandemic is on the horizon and that the economy can eventually reopen without fears of further lockdowns," said David Trainer, CEO of New Constructs, an investment research firm based in Nashville, Tennessee.
Energy (FTNMX0530), bank (FTNMX8350) and mining (FTNMX1770) stocks provided the biggest boost to the FTSE 100, which has already gained more than 15% this month, helped by a slew of local stimulus measures and hopes of a sooner-than-expected economic recovery.
Bank stocks also gained following news that PNC Financial Services Group Inc (N:PNC) would buy the U.S. business of Spanish lender BBVA (MC:BBVA) for $11.6 billion in cash.
Vodafone Group Plc (L:VOD) surged 6.9%, after saying it was increasingly confident about its full-year performance, while tech firm Smiths Group (L:SMIN) rose 4.8%, after highlighting a 30 million-pound cost-saving target for FY21.
Companies that have benefited from people staying home during the pandemic, such as Rentokil Initial (L:RTO), Just Eat (LON:JE) Takeaway.com (L:JETJ) and Ocado Group Plc (L:OCDO), tumbled between 3.3% and 4.1%.
Meanwhile on the Brexit front, EU warned Britain on Monday that time was fast running out for a trade deal, as negotiators in Brussels began a last-ditch attempt to avoid a tumultuous exit at the end of December.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.