Vaccine hopes boosted shared, but entiment was still cautious ahead of a big week of central bank meetings in UK, Japan and the United States.
AstraZeneca announced it has resumed British clinical trials of its COVID-19 vaccine at the weekend, after getting the green light from safety watchdogs.
This is one of the most advanced in development.
The late-stage trials of the experimental vaccine, developed with researchers from the University of Oxford, were suspended last week after an illness in a study subject in Britain, casting doubts on an early rollout.
A vaccine has long been awaited to help pull the world out of a coronavirus-induced lockdown.
“The reopening of the global economy is enticing us to recommend a trade going long a basket of 14 laggard ‘back to work’ stocks versus a basket of 14 high-flying ‘COVID-19 winners’,” BCA Research wrote in a note.
“While we maintain a cyclical and secular bullish outlook on the broad market, a short-term correction due to technical and (geo) political reasons is likely on the cards,” it said
“A playable short-term pullback is in order.”
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Asian shares soar as coronavirus vaccine resumes phase 3 trials
12.45pm update: Expert reacts to markets
Seema Shah, chief strategist at Principal Global Investors, reacted to the markets on Monday.
Shah said: “There is still some caution in markets because US virus numbers appear to be picking up again in some states.
“The vaccine is positive news but there is a lot of scepticism about when it comes in and how widely it will be adopted.”
12.30pm update: Limited gains despite vaccine hopes
World stocks nudged higher on Monday on hopes for a coronavirus vaccine.
It came after AstraZeneca resumed its phase-3 trial.
But, the gains were limited ahead of a host of central bank meetings this week.
11.45am update: FTSE down
The FTSE-100 index at 11:45am was down 11.35 at 6020.74.
11.00am update: Morning’s gains wiped out
FTSE’s morning gains have been wiped out following a sharp slump.
The UK index rose from yesterday’s close of 6,032 to 6,074 in just 15 minutes this morning.
However it has since plummeted below open, now sitting at 6,017.
9.15am update: European markets start strong
Like FTSE, European markets have started the day brightly.
Euronext 100 is up 0.70%, CAC 40 is up 0.77%, DAX is up 0.53% and Swiss Market Index is up 0.30%.
8.20am update: FTSE soars on open
FTSE has soared on open this morning, growing 70 points in just a matter of minutes.
The UK index closed at 6,043 on Friday afternoon, after a productive week during which it rose from 5,799.
This morning the index has continued its bright form, rising from 6,043 to 6,076.
More to follow…