FTSE 100, FTSE 250 Jump 1% As Trump Agrees Biden Transition, Covid-19 Vaccine Optimism Supports Rally

  • November 24, 2020 01:38 PM GMT
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1378 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

FTSE 100, FTSE 250 Jump 1% As Trump Agrees Biden Transition, Covid-19 Vaccine Optimism Supports Rally

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.

 


Disclaimer
The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd (Kalkine Media), Company Number 12643132. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK