Markets surge on hopes of virus vaccine

The London markets surged as traders were hopeful following news of progress regarding two drugs firms’ efforts to produce a coronavirus vaccine.

Positive vaccine news from US biotechnology giant Moderna and suggestions by Robert Peston that there has also been progress for the Oxford Covid-19 vaccine backed by AstraZeneca put a smile on the face of traders.

The FTSE 100 closed 112.9 points higher at 6,292.65p at the end of trading yesterday.

David Madden, market analyst at CMC Markets UK, said: “Stocks are driving higher on the back of optimism in relation to the possibility of a Covid-19 vaccine being developed.

“The bullish sentiment has rippled out across Europe, as the FTSE 100 briefly traded above 6,300, the CAC 40 hit its highest level since late March and the DAX 30 reached a mark last seen in late February.”

The major European markets also leapt higher as a result of the positivity around progress on the potential vaccines.

The German Dax increased by 1.84%, while the French Cac moved 2.03% higher.

Across the Atlantic, the Dow Jones opened higher after the bell as a strong showing by Goldman Sachs helped it trade the right side of 27000 for the first time in exactly five weeks.

Meanwhile, sterling moved higher after the Office for National Statistics revealed that inflation rose to 0.6% in June on the back of price rises for video games and clothing.

The pound rose 0.22% versus the US dollar at 1.258 and was up 0.18% against the euro at 1.103.

The price of a barrel of Brent crude oil increased by 0.19 to 43.1 US dollars.