The Footsie gained 202 points after the Brexit transition period ended
The UK’S top market hit its highest point in nine months yesterday as traders celebrated the roll-out of the new vaccine.
The FTSE-100 gained 202 points in its first day of trading after the Brexit transition period ended — closing the day on 6571.88, up by 1.72 per cent on Friday’s 6460.52.
Analysts said a falling pound suggested the Footsie’s strong morning had little to do with Brexit. It ended the day down from $1.3674 to $1.3558.
The Footsie surges were followed by increases of 1.9 per cent and 1.3 per cent in the French and German main indexes.
All three were probably responding to the announcement that the NHS is starting to distribute the Oxford-AstraZeneca vaccine against coronavirus.
Despite the rapid increase in daily Covid-19 case numbers and the impending need for a new national lockdown, the Footsie was the most bombastic of the major indices after the bell, said Connor Campbell, an analyst at Spreadex. These gains can be tied to the roll-out of the Oxford-AstraZeneca vaccine — the continuation of 2021’s great hope for ending the coronavirus pandemic. It is another step on the journey back to normality, and investors have seized upon it with all their might.
He added that a 0.4 per cent drop in the pound against the euro, while remaining flat against the dollar, would indicate that the Footsie’s gains are not significantly tied to Brexit.
The top market was also helped by a soaring Entain share price. The Ladbrokes and Coral owner said it had rejected an £8.1billion offer from US casino giant MGM Resorts, prompting shares to surge by 26 per cent.
Neil Wilson, a Markets.com analyst, said UK firms are benefiting from a liberalisation of the US gaming market.
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