Markets rise on vaccine optimism

New data showing the AstraZeneca Covid vaccine to be highly effective with a 12-week gap between doses has put a spring in the step of markets. It revives a sense of optimism towards society reopening sooner rather later, says Russ Mould, investment director at AJ Bell.

“Also putting markets in a better mood were Joe Biden’s efforts to build momentum behind his Covid relief bill.

“Investors need some good news as most equity markets apart from Asia have lost the gains seen at the start of the year. This is despite many big US companies beating earnings expectations in recent weeks.

“Markets picked up across Europe and Asia, including a 0.8% rise in Germany’s DAX index and a 1% gain from Japan’s Nikkei 225 index.

“The FTSE 100 advanced 0.7% to 6,562, with housebuilders and banks among the big gainers as investors took a more positive view on UK domestic stocks. Vodafone topped the risers after its third quarter trading update signalled a return to growth for its service revenue.”