The FTSE 100 gained 100 points to finish the day at 6,432
In the latest UK stock market news, the FTSE100 is due to open up 0.4% in London on Wednesday morning as a mood of optimism spread across the world on Wednesday.
Extending a surge in recent weeks after big pharmaceutical companies reported promising developments from Covid vaccination trials, the FTSE 100 gained by about 1.6%, rising by 100 points to end the day at 6,432.
The leading index of UK company shares recorded the best week since April earlier this month, after Pfizer/BioNTech said its Covid vaccine was 90% effective in protecting people from transmission of the virus in global trials.
The UK’s blue-chip index remains more than 1,000 points down from the start of the year, reflecting the scale of the Covid recession in the UK.
Vaccine updates from Oxford University and AstraZeneca have further extended the rally this week amid hopes of a swift economic recovery next year. However, the stock market value of the UK’s biggest pharmaceutical firm have dropped by more than £4bn since the announcement on Monday, after reporting lower efficacy rates than other major vaccine producers.
Russ Mould, investment director at the Manchester-based stockbroker AJ Bell, said: Oil acts as an economic bellwether and the commodity has been on a tear for the past month, rising by more than 20% in value as markets start to become more optimistic about economic activity amid positive vaccine news.
The gains come as investors bet that the lingering political uncertainty from the US election result is gradually lifting, after the GSA (U.S.’s General Services Administration) kickstarted the formal transition of power for Biden to take over as president in January.
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