In almost 11 months, the FTSE 100 has risen to its highest closing price. This was attributed to rising oil prices and early results in the United States showing that Democrats could take over the Senate of the nation.
After news that Democrats were heading for victory in Georgia, bank shares rose, stirring excitement about their capacity to push through financial stimulus.
London’s Top Flight finished 229.61 points, or 3.47 percent, higher at 6,841.86 at the close of the trading session on Wednesday.
“The FTSE’s stubborn start to the new year not only continued but accelerated on Wednesday afternoon as the index desperately tries to catch up with its European and U.S. peers. Less than 48 hours after Boris Johnson’s lockdown announcement, the FTSE already seems to have forgotten about that in favor of vaccine optimism, bubbly oil price gains and joy at the prospect of a Democratic-controlled Senate.”The stubborn start of the FTSE to the new year not only continued but accelerated on Wednesday afternoon as the index desperately attempts to catch up with its European and U.S. peers. Less than 48 hours after the lockdown announcement by Boris Johnson, the FTSE already seems to have forgotten that bubbly oil price gains in favor of vaccine optimism.
As British traders were hopeful about progress under Joe Biden, Standard Chartered, HSBC, Natwest and Barclays rose sharply during the session.
Sam Woods of the Bank of England said on Wednesday, “If you look at the big move in bank stocks today, the only plausible explanation is a change in interest rate assumptions because of what’s happening in the U.S.”
Oil prices have seen a similar increase in the U.S. election reports and positive sentiment about the launch of AstraZeneca and Moderna vaccines.
Brent crude oil prices rose by 3.22 percent to $54.67 a barrel.
Elsewhere, all of the other big European indices closed higher, albeit with growth more modest than in the UK.
The Dax of Germany rose 1.76% and the Cac of France gained 1.19% .
In the U.S., relative to its European counterparts, the Dow Jones was comparatively tepid, but still opened higher as it advanced towards a new peak.
Meanwhile, after the dollar rebounded, the pound weakened.
The pound dropped 0.24 percent to 1.359 against the U.S. dollar and was 0.18 percent higher at 1.106 against the euro.
In corporate news, despite the company reporting the first annual loss in its 82-year history, bakery chain Greggs saw its share price leap. Greggs said it expects up to £ 15 million in annual pre-tax losses, far better than the £ 63 million loss analysts had expected. At 1,920 pence, shares ended 140 pence higher.
Shares in Informa’s events sector grew after the company said it remained optimistic that by 2021, physical events would return to North America and Europe. Shares have risen 34.6 pence to 571.6 pence.
Shares in the mobile gaming company Gaming Realms increased on the Goal exchange after it received an iGaming license in Michigan and is targeting strong growth in the United States. At the end, shares rose 5.6p to 27.8p.