Virus vaccine ‘breakthrough’ boosts markets

The coronavirus continues to dominate movements on the stock market as claim and counter-claim left analysts and investors scratching their heads.

By the end of yesterday, the majority of investors preferred to believe the reports in China of a possible cure and a report by Sky News revealing a “significant breakthrough” had occurred on tests for a vaccine.

Their positivity saw the FTSE 100 close up 42.66 points, or 0.57%, at 7482.48 – although the boost was helped by the pound losing strength against the dollar.

A pound was worth 1.300 dollars, down 0.23%, as markets closed, although it was up 0.1% against the euro at 1.181 euros.

It had grown against the dollar in early trading, following strong PMI services data released in the morning. But by afternoon it had been wiped out.

European markets were also enjoying the reports of a breakthrough, with the French CAC 40 up 1% and the German DAX 30 up 1.5%.

David Madden, market analyst at CMC Markets, said: “The World Health Organisation clarified there are ‘no known effective therapeutics’ for the virus, but the bullish mood can’t be contained.”

The biggest risers on the FTSE 100 were Smurfit Kappa up 182p at 2,900p; DS Smith up 21.6p at 374p; Mondi up 80.5p at 1,657.5p; Informa up 34.8p at 820p and IAG up 22.8p at 617.2p. The biggest fallers were Imperial Brands down 131.6p at 1,821.6p; GSK down 75.4p at 1,739.6p; NMC Health down 31.5p at 970p; Vodafone down 4.26p at 146.98p and BT down 4.52p at 158.3p.