(Alliance News) - Stock prices in London are seen opening higher on Monday as investors are hopeful a coronavirus vaccine could begin to be rolled out in the coming weeks.
Early Monday, Anglo-Swedish drugmaker AstraZeneca announced positive results from its coronavirus vaccine trial, adding to similarly promising test results in the US.
In other pre-market UK company news, insurer Aviva took further steps to streamline its portfolio. Cinema chain Cineworld Group secured significant additional liquidity.
IG futures indicate the FTSE 100 index is to open 41.55 points higher at 6,369.00. The blue-chip index closed up 17.10 points, or 0.3%, at 6,351.45 on Friday.
AstraZeneca said clinical trials in the UK and Brazil showed the AZD1222 vaccine was highly effective in preventing Covid-19. The Anglo-Swedish drugmaker, which is partnering with Oxford University, said no hospitalisations or severe cases of the disease were reported in participants receiving the vaccine. There were a total of 131 Covid-19 cases in the interim analysis, it noted.
AstraZeneca said one dosing regimen showed vaccine efficacy of 90% when AZD1222 was given as a half dose, followed by a full dose at least one month apart. Another dosing regimen showed 62% efficacy when given as two full doses at least one month apart. The combined analysis from both dosing regimens resulted in an average efficacy of 70%.
In addition, the Cambridge-based drugmaker said it is making "rapid progress" in manufacturing, with a capacity of up to 3 billion doses of the vaccine in 2021 on a rolling basis, pending regulatory approval. The vaccine can be stored, transported and handled at normal refrigerated conditions, comprising 2 to 8 degrees Celsius or 36 to 46 degrees Fahrenheit, for at least six months and administered within existing healthcare settings.
Two other leading vaccine candidates - one by Pfizer and German partner BioNTech and another by US firm Moderna - have been shown to be 95% effective in trials, and Pfizer has already applied for emergency use approval from US health authorities. US Food & Drug Administration vaccine advisors will meet on December 10 to discuss approval.
The beginning of vaccinations could be a crucial shift in the battle against a virus that has claimed more than 1.4 million lives worldwide, including 255,000 just in the US, since emerging from China late last year.
Meanwhile early Monday, Aviva said it has agreed to sell its entire 80% shareholding in the Italian life insurance joint venture, Aviva Vita, to its partner UBI Banca. Aviva will receive EUR400 million in cash consideration, and proceeds will be used to further strengthen the insurer's central liquidity and to reduce debt.
The move marks the London-based insurer's latest step to refocus its portfolio under the leadership of its new chief executive, Amanda Blanc.
"Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean business. We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders," said Blanc.
Cineworld Group said it secured significant additional liquidity and is implementing further operational measures to improve profitability over the long term.
The cinema operator said it has secured a new debt facility of USD450 million, which matures in May 2024 and has agreed bank covenant waivers until June 2022.
Cineworld believes these steps will provide the company with financial and operational flexibility until lockdown restrictions in key jurisdictions are eased, and movie studios are able to bring their enhanced pipeline of major releases back to the big screen.
"The measures we are announcing today deliver over USD750 million of extra liquidity to support our business. Over the long term, the operational improvements we have put in place since the start of the pandemic will further enhance Cineworld's profitability and resilience," said CEO Mooky Greidinger.
In China, the Shanghai Composite is up 1.1%, while the Hang Seng index in Hong Kong is flat. Financial markets in Japan were closed on Monday for the workers' day holiday.
"Covid-19 vaccinations are expected to commence in December in the US and the UK on a limited scale if Pfizer and Moderna's vaccines are granted early approval. The G20 committed (mostly) to funding vaccines for equitable distribution around the world in 2021...Overall, the rosy sentiment, is being driven by vaccine optimism," said Oanda Market analyst Jeffery Halley.
UK Prime Minister Boris Johnson is to set out the basis of plans for the festive period on Monday, as well as detailing a new tougher three-tier system for England when its national lockdown ends on December 2.
Cabinet office minister Michael Gove met with leaders of the devolved administrations over the weekend when they "endorsed a shared objective of facilitating some limited additional household bubbling for a small number of days".
But the public will be "advised to remain cautious" and told that "wherever possible people should avoid travelling and minimise social contact", a statement from his department said.
The dollar was weaker against major counterparts early Monday in London.
The pound was quoted at USD1.3323 early Monday, up from USD1.3284 at the London equities close Friday. The euro was priced at USD1.1875, up from USD1.1861. Against the yen, the dollar was trading at JPY103.75, lower from JPY103.82 late Friday.
Brent oil was trading at USD45.55 a barrel Monday morning, sharply higher from USD44.00 late Friday. Gold was quoted at USD1,875.11 an ounce, flat from USD1,874.10.
The economic events calendar on Monday has PMI readings from France, Germany, the eurozone, UK and US at 0815 GMT, 0830 GMT, 0900 GMT, 0930 GMT and 1445 GMT respectively.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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