FTSE on the march as UK vaccine target hit

“After finally getting some impetus on a Friday afternoon, at a time when most of us were winding down for the week, the FTSE 100 has started Monday morning without a hint of a hangover from the weekend,” AJ Bell Investment Director Russ Mould.

“Government attempts to manage expectations on Covid better are helpful to the market which is now probably pleasantly surprised at just how quickly the UK has vaccinated the most vulnerable sections of its population.

“This is making it easier for investors to look through to a reopening of the economy even if the pace at which restrictions are eased remains a topic of fierce debate.

“Positive news for the UK is often a double-edged sword for the FTSE as it boosts the pound and thereby crimps the relative value of the overseas earnings which dominate the index.

“However, as this morning’s trading demonstrates, with sterling and the FTSE 100 both higher, an improved economic outlook domestically should still provide support to the UK’s flagship stock index.

“The boost to sentiment is a global story reflected in Japan’s Nikkei-225 hitting a 30-year high and with Asian stocks in general posting big gains.

“The long-awaited US stimulus is a big contributor, along with vaccines, to the positive mood and is also helping to buoy crude oil prices.

“Oil, which has had a very strong start to 2021, is additionally benefiting from concerns over supply thanks to freezing temperatures affecting output in Texas and rising tensions in the Middle East.”

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