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Summary
- The FTSE 100 has amassed a gain of 14.43 per cent to 6,382.10 (11 November) in last eight trading sessions
- In the corresponding duration, the Great Britain pound has also strengthened against the US dollar in the foreign exchange market
The UK stock markets have been largely rising from the last eight trading sessions recovering considerable losses realised due to the Covid-19 fears led crash in February-March.
The benchmark FTSE 100 has advanced more than 14 per cent in the last eight days tracking the upbeat Wall Street and a market-wide buying on the back of substantial news of progress in the coronavirus vaccine development.
With the recent spurt in the FTSE 100, the index is now trading at a nearly five-month high level following the surge in shares of varied sectors.
FTSE 100 at 5-month high
The FTSE 100 has amassed a gain of 14.43 per cent to 6,382.10 (11 November) in exactly eight trading sessions from a level of 5,577.27 as on 30 October. The productive news around the Covid-19 SARS-CoV vaccine has reinstated confidence amid all the investor classes. The markets in Great Britain as well as in other major economies across the European Union have defied the fears of after-effects arising due to recent lockdowns.
FTSE 100 (1-month performance)
(Source: Thomson Reuters)
GBP strengthens vs USD
In the corresponding duration, the Great Britain Pound has strengthened against the US dollar in the foreign exchange market.
According to the latest data available with the Bank of England, the British Pound Sterling has gained 2.04 per cent in the last eight sessions.
As of 11 November, a unit of Great Britain pound translates into 1.3197 United States dollar as compared to an exchange rate of 1.2933 USD in one pound. The persisting strength of the currency has also contributed to the upsurge in the equity markets.
US presidential elections
The outcome of US presidential elections has also assisted the markets in the upward trajectory with the Democratic Party candidate Joe Biden claiming a victory in US presidential election 2020.
He won with a considerable margin as compared to the final seat share of Republican Party candidate and incumbent US President Donald Trump.
Interestingly, stock markets across the world rallied continuously even when the counting of votes of US presidential elections was underway.
Pfizer-BioNTech Covid-19 vaccine update
The FTSE 100 index approximately scooped 6 per cent due to the optimism about the outcome of US presidential elections. The markets furthered the gain with a single-day spike of more than 4 per cent after the pharmaceutical majors Pfizer Inc. and BioNTech SE jointly announced the development in the ongoing Phase 3 trials of coronavirus vaccine. The vaccine candidate has been found to be more than 90 per cent effective in preventing deadly SARS-CoV-2 infection.
Goldman Sachs view on FTSE 100
After the breakthrough in development of coronavirus vaccine, the Goldman Sachs, the global investment banking firm predicted a level of 7,200 for the FTSE 100 by the end of 2021. The psychological level of 7,200 is nearly 13 per cent higher as compared to the previous closing of 6,382.10.
However, the headline FTSE 100 index had touched a high of 7,674.56 on closing basis in the present year itself. Starting the current year on a positive footing, the FTSE 100 gained 1.75 per cent in about 12 trading days to hit a yearly closing high of 7,674.56 on 17 January.
