Investors will be pleased to have seen a second day of modest gains for the FTSE 100 after Monday’s blowout performance on a potential vaccine breakthrough. Slow and steady wins the race, says AJ Bell investment director Russ Mould.
“This suggests the market is not in such a volatile place that any little development might lead to huge swings in either direction. The yield on 30-year UK Government bonds moving above 1% is another sign of improved sentiment as investors move out of safe havens.
“New rules aimed at preventing foreign takeovers for certain sectors may put some short-term pressure on share prices as it removes a potential catalyst for UK stocks but longer term it is probably good news for shareholders if it prevents overseas firms snapping up UK firms at depressed levels.”