On Friday, the FTSE 100 retreated as concerns grew over the rise in COVID-19 infections in the country. But the index still managed to record its best weekly gain since April following hopes of a coronavirus vaccine. The FTSE 100 closed 0.4 percent lower at 6,316.39 on Friday while the European STOXX 600 edged 0.01 percent higher at 385.18.
Russ Mould, AJ Bell investment director, told Reuters: “After the vaccine-infused euphoria at the start of the week a dose of reality seems to have been administered to the market.
“Clearly the COVID-19 crisis is not at an end despite the positive news announced by Pfizer and counterparts in Russia.”
The UK and EU are set to resume trade talks in Brussels on Monday in an attempt to close the gaps on competition rules and fisheries.
Last week James Smith, developed market economist at ING, told Reuters: “Most think that talks realistically can’t stretch much further without causing some degree of logistical problems.
“That said, this is politics at the end of the day and neither side will want to be the one seen to end negotiations.”
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1.35pm update: Latest coronavirus vaccine update boosts markets
The FTSE 100 is up 1.7 percent following the news a second Covid-19 vaccine could soon be approved for use.
Stocks across the globe rallied after US firm Moderna said published results showing its vaccine was 94.5 percent efficient.
Global stocks are now set for a record high.
11.48am update: Global stocks rally
Global stocks eyed a fresh record high on Monday as signs of economic recovery in Asia, recent strong corporate earnings and hopes of a COVID-19 vaccine bolstered investor sentiment.
The MSCI World Index of global shares rose 0.5 percent to 608.79 points, just shy of the record high hit briefly earlier in the month, helped by strong overnight gains in Asia’s leading markets and a stronger open for most European bourses.
MSCI’s broadest index of Asia-Pacific shares outside Japan hit its highest level since launching in 1987 as Japan pulled out of recession, China posted better-than-expected industrial output data and the region signed the largest ever trade deal.
Taking their lead, European indices also rose with Britain’s FTSE 100 and the pan-Europe STOXX Europe 600 both up around 0.7 percent.
“The markets get the new trading week off to a solid start, which is encouraging given all the excitement generated in the last seven days by news of vaccine breakthroughs,” said AJ Bell investment director Russ Mould.
“Solid and steady gains are arguably just what investors need after a very volatile period.”
10.45am update: Latest FTSE-100 price
The FTSE-100 index at 10:45am was up 46.32 at 6362.71.
9.00am update: Currency latest
The pound at 9am was 1.3214 dollars compared to 1.3172 dollars at the previous close.
The euro at 9am was 0.8977 pounds compared to 0.8975 pounds at the previous close.
8.10am update: FTSE jumps on open
FTSE has jumped 40 points on open – a 0.64% rise in just 10 minutes.
The UK index closed at 6,316 yesterday and is already at 6,356 today.
8.00am update: Currency latest
The pound at 8am was 1.3224 dollars compared to 1.3172 dollars at the previous close.
The euro at 8am was 0.8966 pounds compared to 0.8975 pounds at the previous close.
More to follow…