21st Dec 2021 08:56
(Alliance News) - Stock prices in London opened higher on Tuesday rebounding from steep losses on Monday amid optimism that booster vaccines will help protect against the fast-spreading Omicron coronavirus variant.
While studies on the Omicron variant are nascent, emerging evidence on vaccine booster programmes have shown that a third dose can take coronavirus protection to unexpectedly high levels.
Commenting on Moderna's booster shot, Chief Executive Officer Stephane Bancel said on Monday: "The dramatic increase in Covid-19 cases from the Omicron variant is concerning to all. However, these data showing that the currently authorized Moderna Covid-19 booster can boost neutralizing antibody levels 37-fold higher than pre-boost levels are reassuring."
The FTSE 100 index was up 65.93 points, or 0.9%, at 7,263.96 early Tuesday. The mid-cap FTSE 250 index was up 186.84 points, or 0.8%, at 22,736.72. The AIM All-Share index was up 4.59 points, 0.4%, at 1,163.44.
The Cboe UK 100 index was up 1.0% at 721.00. The Cboe 250 was 0.8% higher at 20,106.62 and the Cboe Small Companies was up 0.1% at 14,754.77.
In mainland Europe, the CAC 40 stock index in Paris was up 1.0%, while the DAX 40 in Frankfurt was 0.9% higher.
"It is important to keep in mind that a Covid vaccine's booster shot provides strong resistance against Omicron, and this is what traders and investors need to focus on. More and more people are getting booster shots, and this should mitigate the risk of any economic slowdown," commented AvaTrade analyst Naeem Aslam.
In the FTSE 100, JD Sports Fashion was the best performer, up 3.5%, with the sportswear retailer benefiting from a positive read-across from athletic apparel maker Nike.
Late Monday, Dow 30 component Nike reported second-quarter sales and profit growth despite industry-wide supply chain disruptions.
For the three months to November 30, revenue rose 1% to USD11.36 billion from USD11.24 billion a year ago. Nike's sales were flat on a currency-neutral basis as it continued to grapple with supply chain issues, it said. The stock rose 3.8% in after-hours trade in New York.
Schroders was up 1.6% after the asset manager confirmed it reached agreement to acquire a 75% shareholding in Greencoat Capital Holdings for an initial GBP358 million.
The London-based money manager highlighted that Greencoat is one of Europe's largest renewable infrastructure managers, with GBP6.7 billion of assets under management at November 30.
Schroders said the deal includes a potential earn out, payable three years after completion, which is subject to stretch revenue targets and the continued employment of the senior management team in the Greencoat business. It is capped at GBP120 million.
In the FTSE 250, Rank Group was down 0.6%. The casino operator poached its new finance chief from estate agent Foxtons.
Rank said it has appointed Richard Harris as chief financial officer and board director, with effect from May 1. Harris will join Rank from estate agent Foxtons, where he has been CFO June 2019. He previously spent 11 years at retailer Marks & Spencer in a number of senior finance roles.
In response, Foxtons said it has promoted Chris Hough to CFO and executive director. Foxtons shares were up 6.5%.
Hough currently is director of finance and company secretary, having joined Foxtons in May 2019. Harris will remain with Foxtons until April to ensure an orderly handover to Hough, Foxtons said.
In Asia on Tuesday, the Japanese Nikkei 225 index closed up 2.1%. In China, the Shanghai Composite ended up 0.9%, and the Hang Seng index in Hong Kong closed up 1.5%. The S&P/ASX 200 in Sydney finished up 0.9%.
The pound was quoted at USD1.3246 early Tuesday, up from USD1.3221 at the London equities close Monday.
The euro was priced at USD1.1289, down from USD1.1299. Against the Japanese yen, the dollar was trading at JPY113.63, higher against JPY113.41.
Brent oil was quoted at USD71.85 a barrel on Tuesday morning, rebounding from USD69.78 late Monday. Gold stood at USD1,796.18 an ounce, higher against USD1,793.80.
By Arvind Bhunjun; [email protected]
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