Vaccine hopes lift FTSE in varied session

London’s main index experienced something of a rollercoaster ride yesterday, with a big fall followed by an equally dramatic rise.

The FTSE 100 recovered from a 1.4 per cent drop to finish the day down just 11.78 points, or 0.2 per cent, to 6,157.96.

It came as news of a potential new breakthrough in the fight against coronavirus filtered through to global markets, reversing a Europe-wide sell-off.

A clinical study run by pharmaceuticals giant Pfizer and German company Biontech showed positive results for a potential vaccine to help fight the disease. It helped spur markets on both sides of the Atlantic.

Spreadex analyst Connor Campbell said: “Though it didn’t quite cause the explosion of growth previous reports have done, it did erase European losses that were running as high as 2 per cent at the midday mark.”

The earlier downturn had been sparked by fears over the new cases caused by an opening of the economy. New York City announced that it was suspending plans to start allowing diners back inside as the number of reported cases surged in other parts of the country.

CMC Markets analyst David Madden said: “The tick up in tensions in Hong Kong also contributed to the negative move.”

He added: “Beijing have introduced a controversial law that will give it more control over the former British Overseas Territory, and that could impact China’s international relations.”

The price of a pound rose by 0.6 per cent to $1.2479 and by 0.4 per cent to €1.1088.

News that bosses at discount retailer B&M have been eyeing a “steady recovery” in customer numbers was celebrated by shareholders, who sent the firm’s stock up by 4.9 per cent to 417p.

Silverburn shopping centre owner Hammerson was up 6.5 per cent to 85.4p, despite the fact that it has only been paid 16 per cent of the third-quarter rent that was due.

Shareholders were not very impressed with bumper trading figures from Sainsbury’s as the supermarket said that sales jumped 8.5 per cent in the 16 weeks to 27 June when people stocked up on essentials.

Shares closed down 2.6 per cent at 203.2p as it also unveiled a £500 million profit hit from the pandemic.