Rolling coverage of the latest economic and financial news
- Latest: FTSE 100 hits nine-month high
- AstraZeneca rallies on hopes of Covid-19 vaccine approval
- UBS: UK shares to rally in 2021
- Japan’s Nikkei at 30-year peak
- Wall Street hit record after Trump signs stimulus bill
12.25pm GMT
The oil price has also rallied today, with Brent crude up 1% at $51.37 per barrel.
That takes crude back towards the nine-month highs hit earlier this month.
All three indices on Wall Street closed at all-time highs on Monday and e-mini futures are pointing to another record session today. The positive sentiment also prevailed in Asia where the Nikkei 225 index soared by 2.7% to close at its highest in three decades.
In Europe, most bourses were up only modestly on Tuesday after a strong session yesterday, with the exception of the FTSE 100, as London markets were closed. But London shares were more than catching up today as they surged by 2%.
11.02am GMT
Investment bank UBS predicts that the UK stock market and the pound will rally in 2021, now that the UK-EU free trade deal is agreed.
UBS forecasts the FTSE 100 will rise to around 7,200 points in a year’s time – or around 8% higher than today’s levels.
The UK is one of our favoured global equity markets, particularly from an unhedged perspective as we suspect a large proportion of the return for international investors will come from the strengthening currency – our FX strategists target GBP/USD 1.44 by end-2021.
Including the 3.9% dividend yield, this would point to a c.21% total USD return from the current level of the FTSE 100. Under a “No Deal” Brexit, we would have had a far weaker GBP, and in US dollar terms, UK equities would not be a favoured market.”
UBS: The UK is one of our favoured global equity markets, particularly from an unhedged perspective as we suspect a large proportion of the return for international investors will come from the strengthening currency – our FX strategists target $GBPUSD 1.44 by end-2021. pic.twitter.com/KTg0aN1P5Q
UBS: We target 7,200 FTSE 100 for end-2021 and, given our Bullish view on Sterling, would highlight a forecast total USD return (including dividends) of ~21%. We see UK relative valuations recovering from ~20 year lows.
Continue reading…