LONDON, Dec 2 — Stock markets steadied today, as a rally fuelled by vaccine hopes petered out with confirmation that the UK will next week begin rolling out the Pfizer-BioNTech drug against Covid.
As is often the case, stock markets rally on hopes of good news and then fall back when the anticipation becomes reality.
“The lack of market reaction suggests that this decision was probably widely expected at some point,” noted Michael Hewson, chief market analyst at CMC Markets UK.
Approaching the half-way mark, London’s FTSE 100 rose 0.2 per cent, with support coming from a sliding pound boosting share values of multinationals trading on the benchmark index.
The pound slid against the dollar and euro, as EU Brexit negotiator Michel Barnier told diplomats he could not guarantee a trade deal being agreed with Britain ahead of a December 31 deadline.
Elsewhere in trading, oil prices slipped after Opec and other major producers failed to reach an agreement on extending output cuts that have provided support to the commodity through the pandemic.
They said they would meet again tomorrow.
Today, Britain became the first western country to approve a Covid-19 vaccine for general use, in a major advance for humanity’s fightback against the coronavirus.
UK Prime Minister Boris Johnson hailed the “fantastic” news, while urging the public to remain cautious on the day that England exited a four-week lockdown and re-imposed regional curbs.
While hopes of vaccine roll-outs worldwide — and the expected economic recovery they fuel — continue to be the main driver for equities, investors have won an extra boost this week from a bipartisan group of US lawmakers offering a US$908-billion (RM3.7 billion) compromise to pass a much-needed stimulus package.
The move comes amid fears that millions of Americans will lose crucial financial support over the festive period.
Key figures around 1130 GMT
London — FTSE 100: UP 0.2 per cent at 6,398.42 points
Frankfurt — DAX 30: DOWN 0.3 per cent at 13,347.97
Paris — CAC 40: DOWN 0.2 per cent at 5,572.08
EURO STOXX 50: DOWN 0.2 per cent at 3,517.51
Tokyo — Nikkei 225: UP 0.1 per cent at 26,800.98 (close)
Hong Kong — Hang Seng: DOWN 0.1 per cent at 26,532.58 (close)
Shanghai — Composite: DOWN 0.1 per cent at 3,449.55 (close)
New York — Dow: UP 0.6 per cent at 29,823.92 (close)
Euro/dollar: DOWN at US$1.2050 from US$1.2068 at 2200 GMT
Pound/dollar: DOWN at US$1.3353 from US$1.3423
Dollar/yen: UP at 104.73 yen from 104.32 yen
Euro/pound: UP at 90.19 pence from 89.87 pence
West Texas Intermediate: DOWN 0.5 per cent at US$44.34 per barrel
Brent North Sea crude: DOWN 0.3 per cent at US$47.30 per barrel — AFP
