Summary
- UK stock markets have extended gains on 24 November after Trump confirmed that the Biden transition can begin
- The optimism around the vaccine development has maintained an elevated mood among the market participants
- FTSE 100, FTSE 250, FTSE 350 and FTSE All-Share surged more than 1 per cent each following a market wide rally
UK stock markets surged in the early morning trades on Tuesday, after US President Donald Trump agreed to start the Joe Biden’s transition. A rally was observed in the market today with the headline indices FTSE 100, FTSE 250, FTSE 350 and FTSE All-Share surging nearly 1 per cent. The optimism over the development of coronavirus vaccines and Prime Minister Boris Johnson’s plan for the festive season have seemingly bolstered the investors’ sentiment.
Festive season & Biden’s transition
On Monday, PM Johnson’s office sent out signals towards the termination of ongoing lockdown next week. However, sources said there will be newer guidelines in the upcoming controlled regime that is going to be implemented across the UK. PM Johnson is likely to reveal the details of the Christmas plan today.
In the US, President-elect Joe Biden and Vice President-elect Kamala Harris have been confirmed as the apparent winners in the US presidential elections by GSA Administrator Emily Murphy, the Office of the President-elect said in a notification. President Trump has recommended to begin the “initial protocols”.
UK markets extend gains
The UK markets have extended the gains following the persisting set of developments on the domestic front, as well as around the globe and the upbeat Asian markets with Japan’s Nikkei 225 settling 2.5 per cent higher. The benchmark FTSE 100 has advanced more than 1 per cent supplementing the positive opening. Interestingly, all the other broader indices of London Stock Exchange have registered a largely similar rise.
At the time of writing (around 11:18 am GMT), the FTSE 250 was trading at 197.94 points or 1.01 per cent higher at 19,780.29, FTSE 350 was trading at 3,645.68, up 36.67 points or 1.02 per cent, while FTSE All-Share index was hovering at 36.29 points or 1.01 per cent higher at 3,618.57. During the day so far, the FTSE 100 has oscillated between a range of 6,403.01 and 6,333.72.
FTSE 100 (24 November)
FTSE 250 (24 November)
Earlier on Monday, Dow Jones Industrial Average of New York Stock Exchange ended 327.79 points or 1.12 per cent higher to 29,591.27 after touching an intraday peak of 29,667.75, whereas Nasdaq Composite and the broader S&P 500 concluded marginally higher at 11,880.63, up 0.22 per cent and 3,577.59, up 0.56 per cent, respectively.
DJIA (23 November)
(Source: Thomson Reuters)
Better times ahead?
The upcoming weeks can be very crucial for the world markets following the news around Covid-19 vaccines and a new government in the US. Most of the developed countries have already booked millions of doses of the potential coronavirus vaccine from various pharmaceutical companies and authorised drug developers. Initially, most countries have reserved the first doses of the vaccine for their frontline workers and healthcare staff, including doctors and care staff and people working in order to ascertain a regular supply of essential items.
