London stocks gain on faster recovery hopes; Vodafone jumps

HomeMarkets

London stocks gain on faster recovery hopes; Vodafone jumps

British shares rose for a third straight session on Wednesday, as investors hoped for a faster economic revival due to a slew of favourable earnings u

Vaccine hopes drive European stocks higher
Philips recalls ventilators, sleep apnea machines due to health risks
UK’s Lloyds targets wealth push and office cuts after profit drop

British shares rose for a third straight session on Wednesday, as investors hoped for a faster economic revival due to a slew of favourable earnings updates and quicker vaccine rollouts, while Vodafone (LON:VOD) jumped after its earnings beat estimates.

The blue-chip FTSE 100 index climbed 0.3%, with insurance and food and drug retailer stocks leading the gains, while the mid-cap index added 0.4%.

Markets in Asia and the United States climbed on renewed hopes for U.S. President Joe Biden’s proposed $1.9 trillion COVID-19 aid bill and an acceleration in vaccine roll-out programmes.

“Global investors are starting to invest more money into the UK and Europe and, I think, this is helping push up areas such as banks and companies focused on recovery of the UK economy in 2021,” said Chris Bailey, a strategist at Raymond James.

“Vaccine numbers for COVID-19 have been very good in the UK over the recent weeks and that has given people some confidence as well.”

The export-oriented and commodity stocks-heavy FTSE 100 has rebounded from early-2021 losses to trade 1.3% higher for the year, as vaccine rollouts pick up pace, corporate earnings improve and commodity prices increase, placing the index nearly 5% short from its highest level this year.

Vodafone, the world’s second-largest mobile operator, rose 3.6% and was the top boost to the FTSE 100 after saying its organic service revenue returned to growth in its third quarter, beating analysts’ expectations.

Drugmaker GlaxoSmithKline gained 0.8% as it struck a 150-million-euro ($180 million) deal to develop next-generation vaccines against COVID-19 with German biotech firm CureVac.

Glencore (LON:GLEN), which mines coal, nickel, silver, zinc and copper, reversed early gains to slide 0.7% even after it stuck to all of its production targets for 2021.

COMMENTS

WORDPRESS: 0
DISQUS: 0