London stock market rose sharply on the first day of trading in 2021 in hopes that the newly approved Oxford coronavirus vaccine will result in a vaccine faster than expected economic recovery from the pandemic

The FTSE 100 rose nearly 3% on Monday morning, climbing more than 150 points to 6638 after the vaccine, developed by Oxford University and AstraZeneca, was administered for the first time since it was approved by the UK Medicines Agency last week

Shares in Entain, owner of betting brands Ladbrokes and Coral, rose 27% in early trading, the blue-chip index’s biggest surge, after the company made a $ 8 billion tender offer GBP had declined and the company had significantly undervalued business

Equity markets across Europe rebounded as investors bet that a rapid economic recovery will follow tighter government restrictions to curb rapid growth in Covid-19 infections, France’s Cac 40 index rose 17% and Germany’s Dax 30 increased by 12%

Analysts said the lack of widespread disruption to cross-border trade after the end of the Brexit transition also boosted markets, but truck movements are below average for the time of year after companies had to move goods quickly before the transition ended and before 31 December a last-minute deal between the UK and the EU was agreed

However, tighter government restrictions and rapid growth in coronavirus infections are expected to hit the economy earlier this year

Hinesh Patel, portfolio manager at investment firm Quilter Investors, said the stock market gains were a reflection of investors desperately hoping the vaccine could be rolled out quickly “otherwise they could accept the economy reopening ahead of time”
However, he added, “With Brexit risk looking like it’s off the table and Oxford University / AstraZeneca is starting to roll out vaccines, many investors are taking the opportunity to take advantage of some of the potential opportunities that they may have missed “

before Christmas.”

FTSE 100, FTSE

World News – GB – FTSE 100 jumps as Covid vaccine raises hopes for recovery

Source: https://www.theguardian.com/business/2021/jan/04/ftse-100-covid-vaccine-stock-markets-europe