Travel, commodity stocks boost London shares on vaccine hopes

London's FTSE 100 rose on Tuesday, boosted by commodity stocks as investors remained hopeful of a swift economic recovery based on positive COVID-19 vaccine updates, while travel stocks gained after England sought to shorten quarantine with a new testing system.

The commodity-heavy index rose 0.8pc, with energy and mining stocks jumping on higher crude and metal prices.

The domestically focused mid-cap FTSE 250 index added 0.8pc after England said it will introduce a new COVID-19 test-and-release scheme on Dec. 15 to reduce quarantine period for incoming passengers from high-risk countries.

Shares of British Airways owner IAG and low-cost airline EasyJet Plc jumped 5.4pc and 5.7pc, respectively, while travel group TUI AG and cruise operator Carnival Plc surged 10.4pc and 9.3pc each.

"Today it seems to be just sort of a low-key dregs of the more recent optimistic trading based on the vaccine news," said Connor Campbell, financial analyst at Spreadex.

"Investors are still thinking long-term post-vaccine at the moment and are looking into various sectors that have been hemorrhaged in the last eight months."

A sharp rally in cyclicals like energy and bank stocks on vaccine-related cheer and hopes of a speedy economic recovery have helped the FTSE 100 index gain more than 14pc this month, setting it for its best month on record.

Pets at Home Group tumbled 7.7pc after it warned of an uncertain outlook in the initial weeks of a fresh UK lockdown.

Catering firm Compass Group Plc rose 4.2pc even as it reported a 75.5pc slump in annual pretax profit.

Meat processor Cranswick Plc added 3.6pc after posting a higher first-half profit.

Technology firm IQE Plc rose 4.1pc after it forecast a higher annual revenue and said its chief executive officer would step down after three decades at the helm.