SHARES across the world kept rising on Tuesday, one day after the Pfizer Covid-19 breakthrough led to a trading frenzy.
There were fears that Monday’s sharp rally would be short lived, as traders and investors took profits, and digested the reality that economies remain in the mire and that job losses are soaring.
Instead the FTSE 100 added another 110 points to 6296. It is up more than 500 points — £125 billion worth – in a week.
The biggest risers included BT, Rolls Royce and BA owner IAG.
In New York, the Dow Jones index of America’s 30 biggest stocks also rose again, up 167 points at 29,324.
Winners on the Dow included such traditional stocks as Boeing and Walgreens Boots. Plane makers and retailers are suddenly back in fashion on the hope that consumers will fly and shop again, rather than just make Zoom calls on iPhones.
Big tech is out of favour, just for now.
Mihir Kapadia, the CEO of Sun Global Investments, said:
“The global market rally has continued its upward trajectory by building on momentum from yesterday’s vaccine developments.”
Analysts think economies could be back up and running before long.
Ryan Detrick, LPL Financial’s chief market strategist, said: “The strong results from the Pfizer vaccine were better than most expected and [mean] we could be opening back up sooner than expected.”
Share trading volumes were healthy today, if not hitting Monday’s pace.
Nearly $2 trillion changed hands that day according to early data analysed by Reuters.
In the United States, nearly $500 billion worth of trades went through stock markets on Monday, one of the busiest days since March, when coronavirus lockdown fears rattled financial markets. Europe saw $120 billion traded, according to Refinitiv data.
European shares hovered at eight-month highs today. Banking, travel and leisure, and energy stocks were among the biggest gainers.