FTSE 100 closes in the red as Astrazeneca doubts weigh on index
The FTSE 100 closed in the red this afternoon as growing doubt over the efficacy of the Astrazeneca vaccine weighed on hopes for a swift economic recovery from the pandemic across Europe.
London’s blue-chip index reversed this morning’s gains, closing down 0.4 per cent at 6,749.7 points to its lowest level in just shy of a week.
It comes after Italy, France and Germany followed a swathe of European countries making the drastic decision to temporarily halt the rollout of the Astrazeneca Covid vaccine amid an investigation into several blood clot-related deaths.
The news knocked Germany’s DAX off its recent record highs, and sent France’s CAC index down 0.3 per cent.
Commodity stocks Evraz, BP, Royal Dutch Shell, Rio Tinto, Glencore and BHP Group, also weighed on the FTSE 100.
British multinational mining giant Evraz topped the list of fallers this afternoon, closing down 3.21 per cent at 554.6p.
Flutter was the leading riser of the day, closing up 6.8 per cent on its confirmation that it is mulling spinning off its Fan Duel brand to take advantage of the US market.
Fellow betting firm Entain, which owns Ladbrokes, gained 1.7 per cent over the day. Like Flutter, it has seen impressive growth recently due to its performance across the Atlantic.
Rolls-Royce closed up 2.7 per cent as sentiment around the stock continues to recover from last week’s dip, when the company announced a £4bn loss for the year.
Deliveroo also announced plans to raise £1bn from listing on the London stock market, with the value of the overall group speculated to be in excess of £5bn. The food delivery market has exploded over the past year as restaurants remain shuttered under current restrictions.
Meanwhile, oil firms have been boosted higher by the steady rise in oil prices, with Brent crude now sitting just shy of $70.
The Bank of England’s Monetary Policy Committee (MPC) will meet on Friday to decide whether to make any changes to the UK’s current fiscal policy.
Richard Hunter, head of markets at Interactive Investor, said it would “provide further colour to immediate prospects”, as the UK’s vaccine rollout continues at pace.
“Investors continue to anticipate speedy economic recoveries as the powerful forces of accelerating vaccine rollouts and significant financial assistance combine,” he added.
“A better than expected GDP number last week, a levelling of sterling and an increasingly positive external view of UK prospects has tempted some international investors to test the waters.
Markets around the world were also helped higher by events in the world’s two largest economies.
At the end of last week, President Joe Biden signed his $1.9 trillion (£1.4 trillion) Covid-19 stimulus bill into law. The effect will be felt around the world.
AMC Entertainment shares jumped almost 26 per cent as the cinemas in LA began reopening today. The group plans to reopen 23 venues in LA on Friday, after months of closure.
The Dow Jones retreated from its record high on Friday after “lacklustre” trading, according to CMC Markets analyst David Madden.
“It appears the bulls are taking a breather in light of solid gains that were posted last week. The New York empire manufacturing reading jumped to 17.4, the fastest rate of growth in almost two years. The update contributes to the narrative the US economy is recovering,” he added.
GenMark Diagnostics’ shares hit an all-time high today as it agreed to be acquired by Swiss healthcare giant Roche for $1.8bn, or $24.05 per share. Shares soared 29.5 per cent to $23.96.