The index closed 4.7 percent up following the back of the news, which indicated a Covid-19 vaccine could be rolled out within weeks. Pfizer’s candidate for a cure to the infectious virus is understood to have shown to be 90 percent effective in trials. It is now gathering safety data to present to the regulator later this month.
A total of £82billion has been added to the value of FTSE shares following the announcement.
The sudden surge represents the market’s best day since March 24.
Airlines have seen a rapid increase in the value of their shares following the news, with the announcement giving a potential lifeline to the industry which has been so badly hit by the pandemic.
EasyJet has seen shares rise up 30 percent.
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FTSE 100 LIVE: Britain’s FTSE soars on news of a coronavirus vaccine breakthrough
5pm update: FTSE closes on near three-month high
The blue-chip FTSE 100 index closed up 4.7 percent, logging its best day since March 24, while the domestically focused mid-cap FTSE 250 soared 5.2% percent to a more than eight-month high.
Travel and oil stocks surged 12.3 percent and 13.2 percent, respectively.
3.40pm update: Reaction to vaccine breakthrough
Shares of banks, oil and travel companies soared on Monday after Pfizer said its experimental COVID-19 vaccine was more than 90 percent effective.
“It’s a game-changer because the possibility of a vaccine makes it possible to envisage reopening the economy in 2021 and a strong and sustainable recovery”, said Emmanuel Cau, head of European equity strategy at Barclays.
3.05pm update: Big UK risers amid vaccine news
Cineworld Group Plc saw a jump of 38.79 percent, Easyjet Plc a jump of 32.71 percent and Rolls-royce Holdings Plc a jump of 50.73 percent, according to ADVFN toplists.
Other airlines and travel companies also recorded a jump in prices following the vaccine breakthrough.
2.45pm update: FTSE-100 rockets
The FTSE-100 index at 2:45pm was up 301.54 at 6211.56.
2.10pm update: US markets set to soar
The S&P 500 and Dow were set to open at record highs on Monday.
The companies hit hardest by months of travel bans and lockdowns soared, with Boeing Co up 15 percent, and airlines and cruise line operators all between 20 percent and 30 percent higher.
“The (vaccine effectiveness) has far exceeded even the wildest of optimistic expectations and the market is reflecting that,” said Thomas Hayes, managing member at Great Hill Capital Llc in New York.
The coronavirus pandemic has sent shockwaves through the UK economy
1.45pm update: Index continues to surge
The FTSE-100 index at 1.45pm was up 335.91 at 6245.93.
12.15pm update: FTSE erupts after coronavirus vaccine breakthrough
The FTSE has soared following positive news from the US on Pfizer’s coronavirus vaccine programme.
Pfizer said its experimental vaccine was more than 90% effective in preventing COVID-19 based on initial data from a large study, a major victory in the fight against a pandemic that has killed over 1 million people, roiled the world’s economy and upended daily life.
The UK index has jumped from 5,979 at 11.45am to 6,165 at 12.10pm – a major leap.
10.45am update: FTSE’s bright start continues
The FTSE-100 index at 10:45am was up 80.16 at 5990.18.
10.30am update: Financial ombudsman overwhelmed by complaints
More than 10,000 Covid-19-related complaints have been received by the financial ombudsman, which is hearing from people who are unhappy with their lender’s response after facing financial difficulties.
This includes over 5,900 coronavirus-related complaints made between July and September.
The Financial Ombudsman Service (FOS) is encouraging lenders to ensure they are responding effectively and fairly to their customers.
The FOS steps in to resolve issues when consumers have already complained to a financial firm but they are unhappy with the outcome.
In total, the service received 68,735 complaints between July and September.
This was up by nearly a fifth (19%) compared with the previous quarter.
9.00am update: Currency latest
The pound at 9am was 1.3142 dollars compared to 1.3170 dollars at the previous close.
The euro at 9am was 0.9029 pounds compared to 0.9024 pounds at the previous close.
8.30am update: FTSE soars on open
The FTSE 100 has gained more than 1.5% as the index bounced after most major US news outlets named Joe Biden as the winner in last Tuesday’s presidential election.
The index rose by around 89 points as trading started in London, hitting 5,999. It added around £23 billion to the value of the index.
On Friday, the FTSE closed its best week since early June, adding more than 330 points to the index as traders prepared for a Biden victory.
8.00am update: Funerals firm warns of ‘slow-down’ in business after coronavirus
Funerals firm Dignity has warned it may be possible that the high number of deaths due to Covid-19 this year could slow down its business in the next two years.
The suggestion came as the company revealed underlying revenues rose 4% in the nine months to September 25 to £234.5 million, although underlying operating profits fell 8% to £44.2 million as the pandemic restrictions meant added extras including limousines could not be used.
Dignity said in a statement to the London Stock Exchange: “Following the terrible impact of Covid-19 in the second quarter this year, the number of deaths in the third quarter was broadly flat on the prior year.
“The final quarter of 2019 witnessed 152,000 deaths and deaths in October were broadly flat on the prior year.
“The group will not speculate on the most likely outcome for the remainder of the year, however it is possible that the tragic events of 2020 may mean 2021 and 2022 could experience a lower number of deaths than in 2019.”