(Reuters) - 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 .FTSE closed 1.7% higher, after Moderna Inc MRNA.O reported its experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.
Pfizer Inc PFE.N and German drugmker BioNTech SE BNTX.O made a similar announcement on Nov. 9. British drugmaker AstraZeneca Plc AZN.L, which is yet to release results from its late-stage vaccine trials, fell 1%.
The domestically focussed mid-cap FTSE 250 index .FTMC ended 1.8% higher, with cinema operator Cineworld Group Plc CINE.L jumping 13.5% to the top of the index. The wider travel and leisure sub-index .FTNMX5750 gained 3.2%.
“This (vaccine news) is more evidence that an end to the pandemic is on the horizon and that the economy can eventually reopen without fears of further lockdowns,” said David Trainer, CEO of New Constructs, an investment research firm based in Nashville, Tennessee.
Energy .FTNMX0530, bank .FTNMX8350 and mining .FTNMX1770 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.
Vodafone Group Plc VOD.L surged 6.9%, after saying it was increasingly confident about its full-year performance, while tech firm Smiths Group SMIN.L rose 4.8%, after highlighting a 30 million-pound cost-saving target for FY21.
Meanwhile on the Brexit front, EU warned Britain on Monday that time was fast running out for a trade deal, as negotiators in Brussels began a last-ditch attempt to avoid a tumultuous exit at the end of December.
Reporting by Devik Jain in Bengaluru; Editing by Uttaresh.V and Matthew Lewis
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