LONDON: British stocks jumped on Monday as positive vaccine data from drugmaker Moderna bolstered hopes of a swift economic recovery to pre-pandemic levels, offsetting concerns over a post-Brexit trade deal with the European Union.
The blue-chip FTSE 100 index closed 1.7% higher, after Moderna Inc reported its experimental vaccine is 94.5% effective in preventing Covid-19 based on interim data from a late-stage trial.
Pfizer Inc and German drugmker BioNTech SE made a similar announcement on Nov. 9. British drugmaker AstraZeneca Plc, which is yet to release results from its late-stage vaccine trials, fell 1%.
The domestically focussed mid-cap FTSE 250 index ended 1.8% higher, with cinema operator Cineworld Group Plc jumping 13.5% to the top of the index. The wider travel and leisure sub-index gained 3.2%.
Energy, bank and mining stocks provided the biggest boost to the FTSE 100, which has already gained more than 15% this month, helped by a slew of local stimulus measures and hopes of a sooner-than-expected economic recovery.
Bank stocks also gained following news that PNC Financial Services Group Inc would buy the US business of Spanish lender BBVA for $11.6 billion in cash. Vodafone Group Plc surged 6.9%, after saying it was increasingly confident about its full-year performance, while tech firm Smiths Group rose 4.8%, after highlighting a 30 million-pound cost-saving target for FY21.
Companies that have benefited from people staying home during the pandemic, such as Rentokil Initial, Just Eat Takeaway.com and Ocado Group Plc, tumbled between 3.3% and 4.1%.
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