The London stock market rose to a nine-month high today as investors gave a thumbs up to the UK's post-Brexit trade deal with the European Union.
The FTSE 100 rose 2.58 percent, or 168 points, this morning to 6,670, the first day of trading since the dramatic deal was closed on Christmas Eve.
This means that the FTSE has reached its highest level since the close of trading on March 5th of 6,705, when fears of Covid-19 gripped the markets, but before the first lockdown was announced on March 23rd. Its highest close of trading that year was 7,675 on January 17.
The benchmark index of the UK's largest companies rose over the period known as the "Santa Claus Rally" as stock markets tended to rise towards the end of the year.
It is believed that this is due to the fact that investors are becoming more optimistic, increasing consumer spending, and trading volume with many people is lower while on vacation.
Both of the key Eurozone markets have also returned with shock profits backed by a US $ 900 billion pandemic recovery package agreed in the US and the Brexit deal.
PAST FIVE DAYS: The FTSE 100 was up 2 percent today when it reopened after Christmas
PAST MONTH: The FTSE 100 plunged last week before gradually regaining those losses
2020: The FTSE had a miserable March but was slowly making up for some of its losses
AvaTrade analyst Naeem Aslam said today: & # 39; The Brexit deal is really a boon … for the UK and the FTSE 100 index. There is no doubt that the FTSE 100 was a trailing index and now it is time to shine. & # 39;
The Frankfurt DAX 30 index rose 0.4 percent to 13,846 and expanded its strong performance yesterday, while the Paris CAC 40 rose 0.4 percent to 5,609.
Analysis: Brexit deal, US economy and the introduction of vaccines are increasing inventories
By SUSANNAH STREETER
The unpacking of the Brexit deal and a stimulus package for the US economy pushed stocks in Europe higher with further optimism. Now the foundation stone is being laid for sustainable recovery.
Mobilizing large vaccination programs is an extra shot in the arm that helps address spike concerns in certain cases.
Astra Zeneca is one of the biggest climbers on the FTSE 100 as its Oxford vaccine is expected to be approved and launched imminently, adding to the UK healthcare arsenal against the pandemic.
The domestically focused FTSE 250 increased by 2 percent with TUI, the star player, an increase of more than 10 percent, as booking rates will rise again in 2021.
Intercontinental Hotels Group and British Airways owner IAG are also significantly higher on the FTSE 100 and the outlook for the global tourism industry is improving.
The shot of caffeine that speculation about an impending Brexit deal had given the pound had gradually faded as investors took the froth from the meager deal and valued its more nasty elements.
The prospects for a new rally towards the end of the year appeared to be flattening, but the pound sterling has risen again today although it is still struggling to climb above 1.10 against the euro and above 1.35 against the dollar.
Although goods are not subject to tariffs and quotas, there will still be friction at the border, with many bureaucracy tires to jump through. The service sector is also largely excluded from the original agreement and further agreements need to be made.
Bank stocks have given up some of their pre-Christmas profits as worries about the possible long-term impact on financial services take hold.
Lloyds Banking Group, Barclays and NatWest lost around 3 percent as concerns about the economic impact of long-week lockdowns also increased.
Susannah Streeter is a Senior Investment and Market Analyst at Hargreaves Lansdown
Speaking to Agence France-Presse, Aslam added, “European stocks are still heavily in Santa rally mode and traders only want to push stocks higher because they know the stock market will be enough in 2021 Has a tailwind.
The fact is, fiscal and monetary support and coronavirus vaccines have changed the way investors look at economic growth.
"Traders believe the economic recovery will be turbo-charged next year and the worst is behind us."
This week, union leader Sir Keir Starmer faces a high profile revolt over his decision to endorse Boris Johnson's EU trade deal in this week's commons vote.
Sir Keir has announced that he will call on Labor MPs to support the "thin" post-Brexit free trade agreement amid concerns that it would fail to protect many key economic sectors.
However, he argued that the alternative of ending the Brexit transition period on December 31 without a deal would be even worse for the economy.
However, his stance has angered some pro-Europeans in the party who say they should not support a flawed agreement and instead abstain.
Labor is alone among the opposition parties when it says it will support the deal – after the SNP and the Liberal Democrats have said they will vote against it.
The DUP – which backed Brexit – has also announced that it will oppose the deal as the Brexit divorce deal provides for customs controls between Northern Ireland and the rest of the UK.
Meanwhile, the self-proclaimed “chamber of stars” of attorneys, led by veteran Eurosceptic MP Sir Bill Cash and assembled by the Tory Brexiteers European Research Group, is expected to deliver its verdict on the deal.
Despite some reported concerns about the elements of the package, the group is believed to be broadly positive – although some are unhappy with how the deal, which is more than 1,200 pages, is being brought through Parliament in a single day.
With Labor backing the deal, it is expected to be conveniently passed tomorrow.
England's hospitals now have more Covid-19 patients than they did during the first wave in April when a health chief warned doctors and nurses they were "back in the eye of the storm".
NHS England figures show that at 8 a.m. yesterday there were 20,426 patients in NHS hospitals in England, compared to 18,974 patients who were enrolled on April 12th.
The number of other laboratory-confirmed cases of coronavirus registered in the UK in a single day also hit a new high of 41,385 yesterday at 9 a.m., rising above 40,000 for the first time, according to government figures.
The case numbers do not include information from Scotland and Northern Ireland, which did not report data between December 24th and 28th, which means the real number is even higher.
Sir Simon Stevens, Managing Director of NHS England said: “Many of us have lost family, friends, colleagues and at a time of year when we would normally celebrate, many people understandably feel anxious, frustrated and tired.
A woman is walking near the Royal Exchange and Bank of England in the City of London yesterday
"And now we are in the eye of the storm again with a second wave of coronavirus hit Europe, and indeed this country."
He said there was a glimmer of hope in the various Covid-19 vaccines and the Oxford / AstraZeneca bump was reportedly being immediately approved by the drug and health product regulator.
However, according to a projection of a paper from the London School of Hygiene and Tropical Medicine, the current vaccination goal must be doubled to two million thrusts per week to avoid a third wave of the virus.
More than six million people in east and southeast England face the highest restrictions on Saturday, which now affects 24 million people, representing 43 percent of the population.
Lockdown measures are also in place in the other three home countries after mainland Scotland introduced level 4 restrictions for three weeks from Saturday and a similar home stay order in Wales.
Northern Ireland has also launched a new six-week lockdown, and the first week's measures are the toughest yet. A curfew is in operation from 8 p.m., from this point on the shops are closed and all indoor and outdoor gatherings are prohibited until 6 a.m.