(Alliance News) - Stock prices in London opened higher on Monday as investors reacted positively to more good news on the coronavirus vaccine front, this time from AstraZeneca.
The FTSE 100 index was up 31.58 points, or 0.5%, at 6,383.03 early Monday. The mid-cap FTSE 250 index was up 159.95 points, or 0.8%, at 19,666.91. The AIM All-Share index was up 0.3% at 1,034.08.
The Cboe UK 100 index was up 0.6% at 635.55 points. The Cboe 250 was up 0.9% at 17,016.89, and the Cboe Small Companies up 0.2% at 11,298.50.
In mainland Europe, the CAC 40 in Paris was up 0.5%, while the DAX 30 in Frankfurt was up 0.7% early Monday.
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, but AstraZeneca did not comment on the effects of the vaccine by age group.
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.
UK Health Secretary Matt Hancock told Sky News that the UK has "100 million doses on order and should all that go well, the bulk of the rollout will be in the new year".
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.
"Any vaccine with an efficacy of 70%, which can greatly reduce the number of hospitalisations, is going to be very important in allowing society to reopen. Indeed, an efficacy of 60-70% is in line with what most people would have expected prior to the trials starting," noted Shore Capital's Adam Barker.
AstraZeneca shares were down 2.1% in London early Monday, though remain up 7.0% so far in 2020.
In the FTSE 100, travel-related stocks were in the green on the vaccine-inspired optimism.
British Airways parent International Consolidated Airlines was the best performer, up 3.0%, and jet engine maker Rolls-Royce was up 2.8%.
Oil majors also were in the green, with BP, Royal Dutch Shell 'A' and 'B' shares, up 2.4%, 2.0% and 1.9% respectively, tracking spot oil prices higher.
Brent oil was trading at USD45.55 a barrel Monday morning, sharply higher from USD44.00 late Friday.
At the other end of the large caps, United Utilities was the worst performer, down 2.0% after RBC Capital downgraded the water company to Sector Perform from Outperform.
In the FTSE 250, Cineworld Group was the standout performer, up 19% after the cinema chain said it secured significant additional liquidity and is implementing further operational measures to improve profitability over the long term.
Cineworld 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.
In China, the Shanghai Composite closed up 1.1%, while the Hang Seng index in Hong Kong is up 0.1%. Financial markets in Japan were closed on Monday for the Workers' Day holiday.
The pound was quoted at USD1.3341 early Monday, up from USD1.3284 at the London equities close Friday.
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 three-tier system for England when its national lockdown ends on December 2.
Johnson will detail the strengthened tiered system in a statement to the House of Commons, where he will appear virtually from Downing Street as he is continuing to self-isolate after coming into contact with an MP who later tested positive for Covid-19.
It is understood pubs and restaurants will be allowed to stay open later than the 10pm curfew which previously existed. The plans will mean that, while last orders must be called at 10pm, people will get an extra hour to finish their food and drinks, with opening hours to be extended until 11pm. In addition, non-essential retail stores are expected to be able to reopen after December 2.
"Adding to the upbeat mood in the UK, the government confirmed that lockdown will end on 2 December and the UK will move to a tier system. This should provide a massive boost to the high street retailers which have been a clear victim of the covid pandemic. Shops, along with bars, restaurants and gyms reopening in all areas of the UK in time for the key Christmas trading period means that the UK economy will once again be able to move forward on its recovery path," said City Index analyst Fiona Cincotta.
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.
Gold was quoted at USD1,875.11 an ounce, up from USD1,874.10.
The economic events calendar on Monday has PMI readings from the eurozone, UK and the US at 0900 GMT, 0930 GMT and 1445 GMT respectively.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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