(Alliance News) - Stock prices in London are seen opening higher on Monday, with investors optimistic that vaccine rollouts in 2021 could spell an end to lockdown measures that battered the global economy in 2020.
IG futures indicate the FTSE 100 index is to open 29.5 points higher at 6,490.02. The blue-chip index closed down 95.30 points, or 1.5%, at 6,460.52 on Thursday.
In 2020, the FTSE 100 lost 15%, its worst annual performance since 2008.
"Investors wasted little time getting their New Year mojo on and are flying right out of gates this morning amid optimism that widespread vaccine distribution will provide the ultimate economic kick start offering a massive booster shot to corporate profits," Axi analyst Stephen Innes said.
"So far investors opt to ignore the bureaucratic treacle in Washington that threatens to gum up the works, and surging Covid case counts as more lockdowns have returned."
In the UK, the first doses of the Oxford University and AstraZeneca vaccine are set to be administered in what has been described as a "pivotal moment" in the UK's fight against coronavirus by the Health Secretary.
Just over half a million doses of the newly approved vaccine will be available from Monday, with vulnerable groups already identified as the priority for immunisation.
However, a new national lockdown looks likely to be imposed across England as the government was accused by the opposition Labour party of letting coronavirus "get out of control".
As events developed rapidly, the Daily Mail reported the government's key "Covid-O" committee that oversees restrictions was expected to meet on Monday to decide changes to the coronavirus regime.
The newspaper quoted a government source as saying ministers were looking at putting even more areas of England into the toughest Tier 4, which already covers a total of 44 million people – or 78% of the population – after changes which came into effect on Thursday.
Plans for a return of shielding for vulnerable people in England are being drawn up by the government, the Daily Telegraph reported.
After UK Prime Minister Boris Johnson signalled tougher restrictions would be brought in within weeks, pressure mounted on the government to act far more swiftly as Labour demanded a lockdown within hours.
"The health crisis is still very much in focus. Covid-19 case numbers have risen in the UK and case number in other European nations are at worrying levels too. There is talk that England is in for even tougher restrictions and there are fears that other countries, such as Germany, Denmark and Ireland will extend their lockdowns. The new strain of the coronavirus is likely to be in the headlines in the near-term but then again so is the vaccine," CMC Markets UK analyst David Madden commented.
The pound was quoted at USD1.3684 on Monday morning in London, improved from USD1.3656 at the early London equities close on Thursday. The euro stood at USD1.2251, down from USD1.2273.
Against the yen, the dollar was trading at JPY103.00, down from JPY103.06 at the London stock market close on Thursday.
In the US on New Year's Eve, Wall Street ended in the green, with the Dow Jones Industrial Average, climbing 0.7%, the S&P 500 0.6% and the Nasdaq Composite 0.1%.
The Dow and S&P 500 finished at fresh records, capping a year in which they, along with the Nasdaq, scored significant gains even amid elevated joblessness and acute pain in sectors such as hospitality, airlines, oil and gas and the performing arts.
Attention in the US will now turn to Georgia and the state's two runoff elections on Tuesday which will decide which party controls the Senate.
OANDA analyst Jeffrey Halley said: "The US state of Georgia's double-senate runoff election tomorrow looms as the week's critical event risk. The result will determine whether the Republicans or Democrats will control the Senate, with the Democrats needing to win both seats. The result will have profound implications for the United States."
"A win by the Democrats will leave them in control of all three legislative bodies and potentially an unfettered legislative path. If the Republican's win just one seat, they will control the Senate and will almost certainly make the incoming President Biden's life as difficult as possible. That almost certainly means no more fiscal stimulus and imperil any other initiatives that President Biden wishes to make."
Monday's economic calendar has a raft of manufacturing PMIs, including readings from the UK at 0930 GMT and the EU at 0900 GMT before the US at 1445 GMT.
China's manufacturing sector continued to improve in December, albeit at the slowest rate in three months, figures from Caixin showed on Monday.
The headline seasonally adjusted purchasing managers' index slipped to 53.0 points, still above the 50.0 no-change mark, but down from 54.9 in November and 53.6 in October.
The Japanese manufacturing sector ended 2020 with operating conditions stabilising in December.
The headline au Jibun Bank Japan manufacturing purchasing managers' index rose to the 50.0 no-change threshold in December from 49.0 in November.
Tokyo's Nikkei 225 closed 0.7% lower on Monday. The Shanghai Composite was 1.0% higher in late trade while Hong Kong's Hang Seng was up 0.8%.
An ounce of gold fetched USD1,923.74 on Monday morning, up from USD1,894.00 at the London equities close on Thursday.
Brent oil was quoted at USD53.04 a barrel, up from USD51.10 at the London equities close Thursday.
Members of the OPEC group of oil producers and their partners will meet via videoconference on Monday to decide on production levels for February, hoping to turn the corner on a difficult year.
The OPEC+ ministerial meeting comes after oil consumption tanked in 2020 due to the Covid-19 pandemic and a price war between Saudi Arabia and Russia.
Despite a pickup in prices towards the end of last year, the market levels for black gold remain uncertain.
By Eric Cunha; ericcunha@alliancenews.com;
Copyright 2021 Alliance News Limited. All Rights Reserved.
Astrazeneca (AZN)
