The FTSE 100 is at its highest level since June following the UK’s approval of Pfizer and BioNTech's Covid-19 vaccine, reports Francesca Washtell for This is Money. "The jab will be rolled out from next week to pave the way for mass vaccination and could herald a return to 'normal' life by next summer," she writes, explaining that elderly people in care homes and care home staff will be the first receivers of the vaccine.
The announcement has buoyed the FTSE 100 index, Washtell says. On 2 December, it rallied by 1.2% to close at 6463.39 – its highest close since early June, and the FTSE 250 rose 0.2% to 19877.77. "The blue-chip index was also nudged higher by a drop in the value of the pound as Brexit talks went to the wire, with sterling below US$1.33 at its lowest point," Washtell adds.
The vaccine approval and the end of the second nationwide lockdown in England saw share prices at some of the country's hardest-hit firms rise. Associated British Foods, which owns Primark, saw a rise of 3% to 2242p as it reopened its shops. Pub group Mitchells & Butlers rose 4.6% to 240.5p, while SSP Group, owner of Upper Crust, climbed 5.3% to 360p.
For travel stocks, there was a mixed reaction. Holiday company Tui fell 5.9% to 481.5p, following an agreement of a third bailout package with the German government, while cruise operator Carnival rose 1.5% to 1389p.
This is Money article
US optimism
In the US, the stock market enthusiasm continues after news of the vaccine. The Dow Jones Industrial Average has posted its best monthly gain since January 1987, as the market acknowledges continued vaccine optimism, writes Matthew Fox for Markets Insider.
The index closed November "having climbed by 11.8%, ahead of April's strong 11.1% gain but below the 13.8% monthly gain of January 1987", writes Fox. He explains that the strong rally was mostly driven by positive news on the vaccine front as Moderna, Pfizer and AstraZeneca reported efficacy rates, surpassing the Food and Drug Administration's (FDA's) 50% threshold.
"On Monday [30 November], Moderna said it would submit data from its phase-three trial to the FDA to be considered for an emergency use authorisation. Investors remain optimistic that a successful Covid-19 vaccine will help jump-start a swift economic reopening in 2021," reports Fox.
Markets Insider article
Stock market moves in Asia
"Philippines and Malaysia spearheaded a rally in emerging Asian equities on Tuesday [1 December]", reports Shashwat Awasthi for Reuters. Optimism due to Covid-19 vaccines "helped stocks make a roaring start to December", he writes.
Tuesday 1 December saw gains in Kuala Lampur, setting it on track for its best day in three weeks, "while those in the Philippines soared more than 3% after profit-taking plunged equities into the red in the previous session". In Indonesia, shares also bounced back from Monday 30 November's steep losses, surging as much as 2%.
Awasthi quotes Frank Benmirza, head of Asia equity strategy at Societe Generale, the French multinational investment bank. Benmirza says that "a potential vaccine is definitely a game-changer", adding that news on timing production and distribution is positive.
In November, China's factory sector accelerated at the fastest pace in a decade, Awasthi reports, plus factory activity showed growth in Taiwan, Indonesia and the Philippines.
Reuters article