By Callum Keown
The FTSE 100 suffered losses on Monday, despite reports the U.K. regulator could approve the COVID-19 vaccine from drugmaker Pfizer /zigman2/quotes/202877789/composite PFE +0.01% and its partner BioNTech /zigman2/quotes/214419716/composite BNTX +1.36% within days, and signs that infections are falling sharply.
The blue-chip index /zigman2/quotes/210598409/delayed UK:UKX +0.46% closed 1.6% down and has gained more than 12% in November, driven by positive vaccine developments.
There was more hope offered on the vaccine front at the start of the week, with the prospect of distribution beginning as soon as next Monday.
The U.K.’s Medicines and Healthcare products Regulatory Agency could approve Pfizer and BioNTech’s COVID-19 vaccine within days , the Financial Times reported on Saturday, with the first immunizations being carried out from Dec. 7. It would make the U.K. the first country to roll out a coronavirus vaccine. The U.S. Food and Drug Administration is set to meet on Dec. 10 to discuss whether to authorize use of the Pfizer-BioNTech candidate, while biotech Moderna /zigman2/quotes/205619834/composite MRNA +3.80% said it would ask regulators in the U.S. and Europe on Monday to approve its candidate.
As a vaccine rollout appeared to edge ever closer, a new study by Imperial College London and Ipsos Mori found that coronavirus cases have fallen by almost a third in England during November’s national lockdown. The country is set to return to a three-tier system on Dec. 2, with most regions returning to tougher restrictions than before the monthlong lockdown.
Despite the double dose of good news to end a record month, the FTSE 100 recorded losses.
“There is a feeling in the markets that pharma companies are closing in on the virus but there is still some way to go yet. It would appear that today’s broadly bearish move in stocks has been driven by profit taking from recent gains and to a lesser extent, concerns about the health crisis itself,” CMC Markets analysts David Madden said.
Energy stocks tumbled as oil prices /zigman2/quotes/211629951/delayed CL.1 +0.17% were under pressure ahead of the Organization of the Petroleum Exporting Countries meeting on Monday. Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA +1.56% slipped 5.4%, while BP /zigman2/quotes/202286639/delayed UK:BP +1.12% fell 5.8%.
“An extension to production quotas is expected but the producers’ cartel has confounded expectations in the past,” said AJ Bell investment director Russ Mould.
AstraZeneca /zigman2/quotes/203048482/delayed UK:AZN +0.27% stock climbed 0.5% as UBS analysts upgraded the biopharmaceutical company’s shares to neutral from sell.
Read: U.K. says Brexit trade talks with EU are in their ‘last week’
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.3802% was 0.2% up against the dollar and was 0.4% against the euro /zigman2/quotes/210561278/realtime/sampled GBPEUR +0.1687% , as face-to-face talks over a post-Brexit trade deal resumed. The U.K. and European Union must agree on their future trade relationship before the transition period ends on Dec. 31
Read: Here’s why fishing rights threaten to scuttle trade talks as both EU and U.K. send Brexit warnings
Add to watchlist
PFE
Add to watchlist
BNTX
Add to watchlist
MRNA
Add to watchlist
UK:RDSA
Add to watchlist
UK:BP
Add to watchlist
UK:AZN
Add to watchlist
GBPUSD
Add to watchlist
GBPEUR
