Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown:
“Another big dose of positive vaccine news has sent the FTSE 100 soaring as investors see the light at the end of the coronavirus tunnel shining even brighter.
“Already aviation and hospitality stocks had been on the front foot today basking in the relief of the Pfizer breakthrough but the news from Moderna indicating its vaccine is almost 95% effective, and may pose fewer logistical issues, sent share prices sharply higher.
“This is early data and the Moderna vaccine isn’t likely to be approved for at least another few weeks but the announcement adds to the confidence washing through the financial markets.
“It’s had a dramatic effect on the share price of companies worst hit by the pandemic with British Airways owner IAG up by more than 11% and aircraft engine manufacturer Rolls Royce rising by around 10% on hopes the global travel industry will recover much faster. Premier Inn owner Whitbread also climbed by around 8 per cent and pub chain J D Wetherspoon by more than 5% as investors forecast that the lockdowns depressing trade will now be more limited. The pent up demand for dining out which is forecast to be unleashed when restrictions ease has taken a chunk out of the share price of Just Eat Takeaway and Ocado. Both firms have reaped huge rewards during the pandemic as millions opted to order in deliveries at home but the expectation is that this trend may now be on the wane sooner rather than later.”