FTSE 100 surges to five-month high after second vaccine breakthrough

The FTSE 100 has spiked to its highest point in five months after a second coronavirus vaccine was revealed to be nearly 95% effective.

US firm Moderna said it was a ‘great day’ today as they revealed the vaccine candidate had proven to be successful, following a trial involving 30,000 people. It will be put forward for approval in the next few weeks.

Reacting to the news, shares leapt up by 1.8% within minutes of the announcement and now stand at 6,445.64. It is another sign of how vaccines could restore confidence to the economy once they are officially approved.

However, companies that have benefited as a result of the pandemic saw their shares fall following the vaccine announcement. Just Eat Takeaway.com dropped by 2.07%, while Reckitt Benckiser, which makes Dettol, fell 2.72%.

Meanwhile British Airways owners, IAG, shot up by 15%, while engine maker Rolls Royce rose by 10.5%.

The FTSE 100 had a similar reaction earlier this month, when Pfizer confirmed that their vaccine had proven to be 90% effective during trials. The announcement caused share prices to jump by 5.5%, adding around £82,000,000,000 to the values of its shares.

The UK is yet to place an order for the Moderna vaccine, which works in similar way to the Pfizer candidate.

A Whitehall source said the government was ‘in advanced discussions’ to buy doses, although they said it would not be available to spring 2021 ‘at the earliest’.

Scientists said the results of the vaccine trial bode well for other Covid-19 jabs, with Oxford University and UK pharmaceutical giant AstraZeneca due to report the results from their candidates in the coming weeks.

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