Rolling coverage of the latest economic and financial news
- Introduction: Pound strongest against US dollar since late April 2018
- 11am: FTSE 1000 up 90 points, led by oil giants and miners
- UK vaccination programme on track
- Carmaker JLR announces net-zero target and electric push
- Japan’s Nikkei highest since 1990
- US crude oil back over $60/barrel
The stock market rally is gathering pace in London, where the FTSE 100 is now up 2% or 132 points at 6722.
That’s the index’s highest level in three and a half weeks (since 21st January), putting the Footsie on track for its best day since 6th January.
“Global markets have started the week higher as investors remain confident that the pandemic will soon give way to an economic boom. Rising for the 11th day in a row, stocks appear to have recovered from the GameStop fiasco as there is now a concrete sign that the global economy is back on track. In Asia, the Japanese Nikkei rose 1.9%, to its highest since 1990, while the South Korean KOSPI has also rallied to provide some impressive gains.
Europe has also felt this momentum with the UK leading the charge across the continent.
US futures update:#DOW 31614 +0.48%#SPX 3952 +0.40%#NASDAQ 13846 +0.27%#RUSSELL 2311 +0.95%
Raffi Boyadjian, senior investment analyst at XM, says US stimulus hopes and vaccine-led euphoria continued to bolster sentiment today, pushing both oil and the pound higher.
It was a bullish mood in commodity markets as well on Monday as rising optimism for the economic outlook fuelled expectations of higher demand for commodities such as oil and copper. WTI oil was up almost 2%, breaking above $60 a barrel today to a new 13-month high. Brent crude was also up sharply (1.3%) to trade above $63.
Aside from the growth optimism, fresh tensions in the Middle East also supported oil prices following reports of an Iranian-backed drone attack in Yemen against Saudi-led forces.