FTSE 100 remains on track for best month in 30 years
The FTSE 100 reversed early losses this morning to remain well on track for one of the best months in its history in November.
London’s premier index gained 0.4 per cent this morning, meaning it is is set for a monthly gain of over 13 per cent – its best in 31 years.
JD Sports was the top gainer, picking up 6.7 per cent. The retailer is reportedly set to step back from its deal to buy the stricken Debenhams.
Oil giants BP and Royal Dutch Shell were the biggest fallers on the commodity-heavy FTSE 100 as oil prices fell two per cent ahead of a meeting of producer group OPEC+.
The oil alliance meets tomorrow to decide whether to extend large output cuts to balance global markets, but members have not yet agreed on the policy.
This month’s rally was triggered by a series of positive announcements about a number of potential vaccines for the coronavirus disease.
On each of the last three Mondays, a different vaccine candidate has been reported as over 90 per cent effective against the disease, prompting a surge of optimism from traders.
The FTSE 250 index of midcap companies also shed half a per cent, but remains on course for its best month since 2009.
With UK and EU negotiators meeting this week in a last-gasp attempt to hammer out a trade deal, the index, which is widely considered a good indicator of Brexit sentiment, could see some further swings.
“The FTSE 100 made a decent start to the week amid some signs the coronavirus restrictions in the UK are working as infection rates fall.
“It feels like Groundhog Day when it comes to Brexit as we enter yet another ‘crunch week’. However, with just a month until the end of the transition period something definitely has to give – we should soon know if it is deal or no deal,” says AJ Bell investment director Russ Mould.
Across Europe, the German DAX was up 0.2 per cent, while France’s CAC fell 0.3 per cent as the week’s trading began.
Traders will wait to see what happens when US markets reopen this afternoon after the long Thanksgiving holiday weekend.