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FTSE 100 starts 2021 with a bang

by LLB Editor
4th Jan 21 10:35 am

The FTSE 100 started 2021 with a bang. Surging more than 2% higher and closing on the 6,700 mark amid M&A news and confirmation that roll-out of the AstraZeneca coronavirus vaccine will commence today, says AJ Bell investment director Russ Mould.

“MGM’s blockbuster bid for gambling group Entain and plumbing firm Ferguson’s sale of its UK business play second fiddle to the vaccine news which is an even more important focus for the markets given the more severe restrictions necessitated by a more infectious strain of Covid.

“For now investors clearly believe the vaccine will provide the catalyst for a big recovery, perhaps after a tough first quarter, but getting enough of the population inoculated will be a big logistical challenge.

“A key determining factor could be whether the existing vaccines prevent transmission of Covid or just infection – this could determine how quickly we return to normality and how patient the market might be.

“Amid a widespread rally across asset classes, the oil and gold price both pushed higher, though the appetite for alternatives is reflected in bitcoin which pushed to a new record above $34,000 having taken out the $20,000 and $30,000 levels in a matter of weeks.”

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