FTSE 100 jumps as purple patch for pound fades

The FTSE 100 jumped higher as equity traders welcomed a dip in the pound and speculation a Covid-19 vaccine could be rushed out in time for Christmas.

Markets across Europe welcomed positive vaccine reports and positive comments from US Treasury secretary Steven Mnuchin regarding a stimulus deal, shaking off weaker-than-expected jobs data in the US.

London’s top flight closed 78.9 points higher at 5,940.95 at the end of trading.

Europe’s other major markets benefited from the broad uptick in sentiment. The German Dax increased by 2.07%, while the French Cac moved 1.9% higher.

Across the Atlantic, the Dow Jones opened higher as traders pinned their hopes on suggestions US politicians can reach a bipartisan agreement to steady the economy.

Sterling’s recent purple patch came to an end, as it slumped on a positive move by the dollar and the prime minister stating major differences still exist between the UK and the EU in relation to reaching a Brexit deal. The pound fell by 0.46% versus the US dollar at 1.33 but was up 0.48% against the euro at 1.125.

Property firms and housebuilders lifted higher after the Office for National Statistics revealed housebuyers shrugged off continued uncertainty in the economy to push prices higher.

Biggest risers on the FTSE 100 were Barratt, up 43.8p at 547.4p, Persimmon, up 144p at 2,695p, and Rolls-royce, up 10.9p at 217.6p. Biggest fallers were Polymetal, down 69p at 1,963p, Fresnillo, down 42.5p to 1,277.5p, and Flutter, down 325p at 11,730p.