Markets rise amid reports of drug progress

The London markets closed in the green on the back of cautious optimism among traders amid hopes of progress for a Covid-19 treatment.

A warning from ratings agency Moody’s that the UK economy is heading for a 10.1% contraction in 2020 – a situation more severe than any other G20 nation – was still not enough to knock the wave of positivity.

The FTSE 100 closed 45.79 points higher at 6,095.41p at the end of trading yesterday.

David Madden, market analyst at CMC Markets UK, said: “Sentiment has been buoyed by hopes for a Covid-19 treatment. A study has found that Remdesivir, an anti-viral drug, can reduce the fatality rate in patients by 62%.”

The major European markets performed similarly well after a buoyant start to trading yesterday morning, before stabilising later in the session.

The German Dax increased by 1.15%, while the French Cac moved 1.01% higher.

Across the Atlantic, the Dow Jones opened higher.

Meanwhile, sterling floated higher ahead of UK-EU negotiations next week, as the currency benefited from a dearth in major economic announcements.

The value of the pound rose 0.27% versus the US dollar at 1.264 and was up 0.05% against the euro at 1.117.

The price of a barrel of Brent crude oil increased by 1.34 to 42.97 US dollars.

The biggest risers on the FTSE 100 were Barclays, up 5.8p at 117.76p, Whitbread, up 104p at 2,268p, Homeserve, up 55p at 1,306p, and Rolls-Royce, up 10.4p at 266.7p. The biggest fallers of the day were Hikma, down 37p at 2,105p, Burberry, down 26p at 1,550p, ABF, down 30p at 1,945p, and BAT, down 42p at 2,878p.