Share Prices & Company Research

Market News

08 Feb 2021 | 07:31

London pre-open: Stocks seen up on vaccine rollout, US stimulus optimism

(Sharecast News) - London stocks were set to rise at the open on Monday as investors took heart from falling coronavirus cases in the UK and a speedy vaccine rollout, and amid optimism over US stimulus. The FTSE 100 was called to open 49 points higher at 6,538.

Hussein Sayed, chief market strategist at FXTM, said: "Appetite for risk is not showing any signs of ebbing away. Asian stocks hovered near record highs in early Monday trade, with European and S&P 500 futures advancing further following a new record close for US indices on Friday.

"US 10-year Treasury yields also hit a post-pandemic high of 1.19%, while Brent Crude reached a new milestone of $60 per barrel.

"Slowing coronavirus infections, continued rollout of vaccines, and anticipation of President Biden's $1.9 trillion rescue package is keeping the bull market well and truly alive."

In corporate news, UK energy producer Drax said it was buying Canadian firm Pinnacle Renewable Energy for 11.30 Canadian dollars a share, valuing it at £226m.

Drax said the offer price for Toronto-listed Pinnacle also implied an enterprise value of CAN$741m, including CAN$356m of debt.

Electrocomponents predicted annual profit in line with expectations as stronger growth offset higher operating costs at the electronic products company.

The company registered 8% like-for-like revenue growth in the four months to the end of January with business increasing across its business. Revenue had shrunk 4% in the three months to September and 11% in the quarter before that.

Trading was held back by higher freight, labour and business continuity costs linked to Brexit. Consensus for the year to the end of March is for adjusted pre-tax profit of £175m.



Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.