London close: Stocks finish firmer on latest vaccine news

London stocks closed in positive territory on Monday, with sentiment underpinned by vaccine optimism and solid Chinese data.

The FTSE 100 ended the session up 1.66% at 6,421.29, and the FTSE 250 added 1.75% to 19,608.05.

Sterling was in a mixed state, last strengthening 0.02% on the dollar to $1.3191, but trading 0.13% weaker against the euro to €1.1139.

“Similar to last Monday, the news that great progress has been made in relation to a possible Covid-19 vaccine has boosted stocks,” said CMC Markets analyst David Madden.

“This time around, the update has come from Moderna.”

Madden noted that the pharmaceuticals company announced that a possible coronavirus drug had been 94.5% effective in testing.

“Every sector has been impacted by the pandemic but some have been hit harder than others.

"Airlines, transport, real estate investment trusts and hospitality stocks were severely impacted because they are arguably the most exposed to the health crisis.”

Figures released earlier showed Chinese industrial production beat expectations in October while retail sales accelerated as the world's second-biggest economy continued to recover from the slump caused by Covid-19.

Factory output increased 6.9% from a year earlier, the National Statistics Bureau said.

The rise was in line with September's and outpaced the 6.5% increase forecast by analysts in a Reuters survey.

Growth was supported by a 7.6% increase in exports as overseas markets have opened up after initial Covid-19 lockdowns.

With employment prospects improving, domestic consumers were also starting to spend more.

Retail sales rose 4.3% from a year earlier in October, with the increase less than the 4.9% expected by analysts but still the fastest growth in 2020.

Car sales rose 12.5% based on increased demand for electric vehicles, while domestic tourism increased over the Golden Week holiday.

The data followed the announcement that China and 14 other Asia-Pacific countries had formed the world's largest trading bloc after eight years of talks.

The multilateral pact covers almost a third of the world economy and is seen as enhancing China's influence in the region.

Oh home shores, Brexit trade talks were entering another "crunch week" as Prime Minister Boris Johnson was forced to self-isolate after meeting with an MP who later tested positive for coronavirus.

“It had been hoped that Thursday’s meeting of EU leaders could be when an agreement would be announced, but it’s looking increasingly likely that it will be just another deadline that will just loom and pass, and instead talks will go down to the wire,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

In equity markets, British Airways owner IAG rose 10.55% and engine maker Rolls-Royce advanced 9.93%, amid optimism over a Covid-19 vaccine, with Premier Inn owner Whitbread ahead 9.82% and InterContinental Hotels adding 5.2%.

Cineworld and cruise operator Carnival also gained, by 13.5% and 12.16%, respectively.

Miners were boosted by the encouraging Chinese data, with Glencore up 2.92%, Antofagasta 2.71% firmer, Anglo American rising 2.71% and BHP 2.22% higher.

Vodafone pushed up 6.92% after well-received half-year results, while IT infrastructure and services provider Softcat rallied 7.56% after it reported year-on-year growth in revenue, gross profit and operating profit.

On the downside, online supermarket Ocado lost 0.4%, Rentokil Initial fell 3.72% and Dettol maker Reckitt Benckiser was 2.07% weaker.

All three stocks had benefited from the Covid-19 crisis.

Market Movers

FTSE 100 (UKX) 6,421.29 1.66%
FTSE 250 (MCX) 19,608.05 1.75%
techMARK (TASX) 3,996.67 1.44%

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 103.00p 9.93%
Whitbread (WTB) 3,066.00p 9.82%
International Consolidated Airlines Group SA (CDI) (IAG) 158.75p 9.79%
Melrose Industries (MRO) 161.20p 8.48%
Vodafone Group (VOD) 127.78p 6.91%
Royal Dutch Shell 'A' (RDSA) 1,241.00p 6.45%
British Land Company (BLND) 504.40p 6.28%
Royal Dutch Shell 'B' (RDSB) 1,186.20p 6.28%
BP (BP.) 250.75p 5.85%
Standard Chartered (STAN) 439.50p 5.42%

FTSE 100 - Fallers

Ocado Group (OCDO) 2,193.00p -4.12%
Rentokil Initial (RTO) 522.20p -3.72%
Flutter Entertainment (FLTR) 13,000.00p -3.49%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,120.00p -3.33%
SEGRO (SGRO) 896.80p -2.99%
Rightmove (RMV) 623.80p -2.71%
Avast (AVST) 442.20p -2.38%
Experian (EXPN) 2,995.00p -2.38%
Unilever (ULVR) 4,642.00p -2.25%
Fresnillo (FRES) 1,103.00p -2.18%

FTSE 250 - Risers

Cineworld Group (CINE) 49.76p 13.50%
Just Group (JUST) 54.45p 12.73%
Carnival (CCL) 1,212.50p 12.16%
SSP Group (SSPG) 368.80p 11.83%
Network International Holdings (NETW) 265.00p 10.36%
Mitchells & Butlers (MAB) 241.00p 10.05%
Rank Group (RNK) 141.20p 9.97%
WH Smith (SMWH) 1,494.00p 9.68%
National Express Group (NEX) 249.20p 9.59%
C&C Group (CCR) 205.00p 9.42%

FTSE 250 - Fallers

Hochschild Mining (HOC) 222.60p -5.44%
Premier Foods (PFD) 91.10p -4.61%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,120.00p -3.33%
Centamin (DI) (CEY) 112.30p -3.23%
Oxford Instruments (OXIG) 1,980.00p -3.05%
Helios Towers (HTWS) 177.00p -2.53%
Dixons Carphone (DC.) 115.10p -2.13%
Vectura Group (VEC) 103.40p -2.10%
Games Workshop Group (GAW) 9,655.00p -1.93%
Spirent Communications (SPT) 260.00p -1.89%