London open: Stocks rally on vaccine hopes, as Nikkei hits 30-year high

London stocks rallied in early trade on Monday, taking their cue from a positive session in Asia, amid optimism over the vaccine rollout.

At 0915 GMT, the FTSE 100 was up 1.2% at 6,665.50, with sentiment boosted after Japan's Nikkei 225 surged past the 30,000 level for the first time in more than 30 years.

Meanwhile, sterling was up 0.3% against the dollar at 1.3895.

Russ Mould, investment director at AJ Bell, said: "Government attempts to manage expectations on Covid better are helpful to the market which is now probably pleasantly surprised at just how quickly the UK has vaccinated the most vulnerable sections of its population.

"This is making it easier for investors to look through to a reopening of the economy even if the pace at which restrictions are eased remains a topic of fierce debate.

"Positive news for the UK is often a double-edged sword for the FTSE as it boosts the pound and thereby crimps the relative value of the overseas earnings which dominate the index.

"However, as this morning’s trading demonstrates, with sterling and the FTSE 100 both higher, an improved economic outlook domestically should still provide support to the UK’s flagship stock index."

In equity markets, engine maker Rolls-Royce gained after saying it has hired former Deloitte partner Panos Kakoullis as chief financial officer to help steer the company through the crisis in the aviation industry.

Mitchells & Butlers was on the rise after saying it plans to raise £350m through an open offer and had also reached agreement with its banks for a new £150m three-year year unsecured revolving credit facility to bolster its balance sheet.

Travel and leisure stocks more generally were in the black amid hopes that the swift vaccine rollout will bring a return to more normal life by spring. Premier Inn owner Whitbread, caterer Compass Group, British Airways owner IAG, TUI, easyJet, Cineworld and WH Smith were all higher.

Banks were also on the front foot, with Barclays, NatWest and Lloyds all firmer.

Elsewhere, Auto Trader was lifted by an upgrade to ‘buy’ at Peel Hunt.

On the downside, dollar-earners were under pressure as sterling advanced, with GlaxoSmithKline, AstraZeneca, Experian and Unilever all weaker.

Moneysupermarket was knocked lower by a downgrade to ‘hold’ at Liberum.

Market Movers

FTSE 100 (UKX) 6,665.50 1.15%
FTSE 250 (MCX) 21,247.76 1.00%
techMARK (TASX) 4,153.46 0.20%

FTSE 100 - Risers

Barclays (BARC) 152.56p 4.56%
Whitbread (WTB) 3,342.00p 4.21%
International Consolidated Airlines Group SA (CDI) (IAG) 155.15p 3.81%
Anglo American (AAL) 2,760.00p 3.64%
Informa (INF) 526.40p 3.62%
Compass Group (CPG) 1,460.00p 3.58%
NATWEST GROUP PLC ORD 100P (NWG) 177.05p 3.33%
Smith (DS) (SMDS) 405.00p 3.21%
BHP Group (BHP) 2,185.00p 3.19%
Lloyds Banking Group (LLOY) 38.21p 3.01%

FTSE 100 - Fallers

Coca-Cola HBC AG (CDI) (CCH) 2,353.00p -0.93%
AstraZeneca (AZN) 7,406.00p -0.87%
GlaxoSmithKline (GSK) 1,268.40p -0.75%
Relx plc (REL) 1,855.50p -0.59%
Experian (EXPN) 2,625.00p -0.49%
Unilever (ULVR) 3,943.00p -0.45%
Croda International (CRDA) 6,572.00p -0.42%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,898.00p -0.40%
SEGRO (SGRO) 964.80p -0.33%
Pennon Group (PNN) 929.20p -0.30%

FTSE 250 - Risers

TUI AG Reg Shs (DI) (TUI) 337.90p 6.59%
Cineworld Group (CINE) 78.96p 5.56%
Virgin Money UK (VMUK) 168.70p 5.08%
easyJet (EZJ) 803.00p 4.91%
National Express Group (NEX) 299.80p 4.83%
WH Smith (SMWH) 1,620.00p 4.65%
OSB Group (OSB) 443.20p 4.63%
Dunelm Group (DNLM) 1,408.00p 4.53%
Hammerson (HMSO) 22.17p 4.53%
Mitchells & Butlers (MAB) 342.00p 4.11%

FTSE 250 - Fallers

Moneysupermarket.com Group (MONY) 260.80p -2.32%
Micro Focus International (MCRO) 458.70p -1.67%
Aston Martin Lagonda Global Holdings (AML) 2,101.00p -1.64%
PureTech Health (PRTC) 390.00p -1.14%
TR Property Inv Trust (TRY) 384.00p -0.78%
GCP Student Living (DIGS) 144.60p -0.69%
Chemring Group (CHG) 289.50p -0.69%
Oxford Instruments (OXIG) 1,998.00p -0.60%
Spirent Communications (SPT) 252.00p -0.59%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 108.40p -0.55%