Wall Street hits record high as global traders cheer Pfizer vaccine

GLOBAL stock markets rocketed after Pfizer said its experimental vaccine was 90 per cent effective in preventing Covid -19, with the biggest US markets hitting new highs and European indices seeing their best session since March.

The Dow Jones and S&P 500 both opened at alltime high as traders across the Atlantic saw already positive sentiment, following Biden’s election win, turn into outright jubilation.

Europe’s main markets had already been reporting their strongest daily performances for almost eight months before the US opening.

Travel, leisure and retail stocks were among the winners in London, with aerospace engineers Rolls-royce soaring by 43.7 per cent and British Airways-owner IAG leaping 25.5 per cent.

It was a tougher session for Ocado and Just Eat Takeaway investors as the vaccine update brought up questions over how long the companies’ boom in demand will last.

The FT SE 100 closed 276.27 points higher at 6,186.29 at the end of trading on Monday.

David Madden, market analyst at CMC Markets, said: “The Covid-19 crisis is far from resolved, but with the way that some traders have been reacting, one could think the pandemic has been put to bed.

“Markets tend to overreact to the downside and to the upside - which is what we are seeing today.’’

Europe’ s other major markets also surged higher, with French traders particularly positive that the vaccine could help its recovery amid its second national lockdown.

The German Dax increased by 4.94 percent, while the French Cac moved 7.57 per cent higher.

In the US, all major markets rallied, with the update from Pfize rover shadowing positivity surrounding the election, stimulus plans and rebounding GDP updates.

Nevertheless, some firms plunged into the red, with Zoom, one of the days big losers as its shares slid 15 per cent.

Meanwhile, sterling dipped as bargain hunters jumped on the US dollar to buy into the greenback, although most traders were focused on stocks through the session.

The pound fell by 0.16 per cent versus the US dollar at 1.314 but was up 0.47 per cent against the euro at 1.112.

The FTSE 100’s biggest risers of the day were Rolls-royce, up 30.44p at 100p; IAG, up 26.4p at 130 p; Inform a, up 101.3 pat558p; and British Land, up 81.6p at 454p.