UK Markets closed
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • FTSE 250

    19,462.71
    +66.37 (+0.34%)
     
  • AIM

    1,039.01
    +0.98 (+0.09%)
     
  • GBP/EUR

    1.1120
    -0.0091 (-0.81%)
     
  • GBP/USD

    1.3313
    -0.0044 (-0.3288%)
     
  • BTC-GBP

    12,943.31
    +202.82 (+1.59%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • DOW

    29,910.37
    +37.90 (+0.13%)
     
  • CRUDE OIL

    45.53
    -0.18 (-0.39%)
     
  • GOLD FUTURES

    1,788.10
    -23.10 (-1.28%)
     
  • NIKKEI 225

    26,644.71
    +107.40 (+0.40%)
     
  • HANG SENG

    26,894.68
    +75.23 (+0.28%)
     
  • DAX

    13,335.68
    +49.11 (+0.37%)
     
  • CAC 40

    5,598.18
    +31.39 (+0.56%)
     

Stocks rise on Moderna vaccine hopes and strong Chinese factory growth

Tom Belger
·Finance and policy reporter
·3-min read

Watch: European stocks rise on vaccine hopes

European stocks hit an eight-month high on Monday, lifted by stronger-than-expected Chinese factory data, the signing of a new Asia-Pacific trade deal and fresh coronavirus vaccine hopes.

US biotech company Moderna (MRNA) announced on Monday that its COVID-19 vaccine candidate had been 94.5% effective during its third-phase trials of 30,000 participants in the US.

The FTSE 100 (^FTSE) closed 1.7% higher after Modern’s announcement, reaching a five-month high. The DAX (^GDAXI) gained 0.5% in Frankfurt and the CAC 40 (^FCHI) rose 1.7% in Paris. The Europe-wide Stoxx 600 index (^STOXX) gained 1.2%, reaching its highest level in more than eight months.

US stocks also leapt later in the trading day. The S&P 500 (^GSPC) was trading 0.9% higher shortly after European markets closed, while the Dow Jones Industrial Average (^DJI) rose 1.3%, and the Nasdaq (^IXIC) gained 0.5%.

Before Moderna’s announcement, global stocks had already been buoyed by data showing industrial output in China rising quicker than expected by analysts in October, up 6.9% year-on-year. Retail sales came in lower than expected at 4.3% growth, but still marked the fastest annual rate of expansion this year.

Watch: U.S. drugmaker says its COVID-19 vaccine candidate appears to be 94.5% effective

The news boosted oil prices, with West Texas Intermediate crude futures (CL=F) up 1.6% to $43.35 a barrel at around 10am in London. Brent crude (BZ=F) futures were trading 1.3% higher.

READ MORE: 15 countries sign the world’s biggest regional trade deal

Commodity stocks were among the biggest risers in the UK on hopes of stronger demand, with Glencore (GLEN.L) up 3.1% and Antofagasta (ANTO.L) up 3%. European oil and gas firms on the Stoxx 600 index were up 1.1%, outperforming the 0.7% gains on the wider index, while vaccine hopes lifted travel and leisure stocks.

Meanwhile 15 countries including almost a third of the global population signed the world's largest regional free trade deal on Sunday, the Regional Comprehensive Economic Partnership.

In Asia overnight, Japan’s Nikkei (^N225) rose 2.1%, the Hong Kong Hang Seng (^HSI) rose 0.7%, and the Shanghai Composite (000001.SS) gained 1.1%. South Korea’s KOSPI (^KS11) rose 2%. Meanwhile in Australia, the ASX 200 (^AXJO) gained 1.2%.

Chinese factory growth was stronger than expected. Photo: Ng Han Guan/AP
Chinese factory growth was stronger than expected. Photo: Ng Han Guan/AP

Moderna’s announcement comes after similarly encouraging results from another potential coronavirus vaccine trial by Pfizer (PFE) and BioNTech (BNTX) sparked a rally on global markets early last week.

Concerns about the second wave of the pandemic had cooled the mood in Europe towards the end of the week, but virus-hit stocks were among the biggest risers on Monday.

British Airways owner IAG (IAG.L) leapt 6% on Monday morning, and was up 11.7% by mid-afternoon. Plane engine-maker Rolls-Royce (RR.L) saw its stocks jump 8.8%.

READ MORE: Bank of England governor wants ‘goodwill’ in UK-EU relations