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Dec. 2, 2020, 11:14 a.m. EST

Restaurants gain in London on vaccine news, but Brexit worries overshadow pound

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By Barbara Kollmeyer

News that the U.K. has granted emergency authorization for a COVID-19 vaccine lifted leisure stocks, but failed to light a fire under markets overall. The FTSE 100 got a lift, partly from a drop in the pound on Brexit headlines.

The smaller-cap FTSE 250 index /zigman2/quotes/210598417/delayed UK:MCX -1.36% still fell about 0.4%, but shares of pub groups such as Mitchells & Butlers /zigman2/quotes/209008939/delayed UK:MAB -1.30% climbed 3%, and those of cinema operator Cineworld /zigman2/quotes/206525056/delayed UK:CINE -4.56% gained 2.6%.

Drugmaker Pfizer /zigman2/quotes/202877789/composite PFE -0.98% and its partner BioNTech’s /zigman2/quotes/214419716/composite BNTX -2.94% two-shot vaccine was authorized  by the U.K. medicines regulator the Medicines and Healthcare products Regulatory Agency, with inoculations expected to roll out within days for those who need it most.

“As the U.K. leaves the nationwide lockdown in favour of the tiered system today, it is now a race against time to vaccinate enough people before a third wave comes to pass next year,” said Joshua Mahony, senior market analyst at IG, in a note to clients.

Read: How the U.K. became first to grant a license for the Pfizer-BioNTech vaccine

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -2.53% , meanwhile, gained 0.3% as sterling /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0790% dropped 0.5% against the dollar. Pound weakness works in favor of multinational companies, as it makes their goods more competitive overseas.

“The pound has been hit hard on the news that [chief European Union Brexit negotiator] Michel Barnier has notified the EU27 that a no-deal scenario is looking increasingly likely,” said Mahony.

Addressing the 27-member EU on Wednesday, Barnier reportedly said sticking points remain to reach a deal on a future trade relationship before the U.K. leaves Europe’s single market on Dec. 31. In closed-door meetings, he said sticking points remained, the Financial Times reported.

Read: Scotch-egg debate transfixes England on eve of lockdown’s end

Gains for heavily-weighted mining stocks helped lift the FTSE 100, a day after copper prices /zigman2/quotes/210055581/delayed HGH21 -3.94% shot to the highest levels since March 2013 , with shares of Rio Tinto /zigman2/quotes/202627887/composite RIO -3.03% /zigman2/quotes/208934945/delayed UK:RIO -4.52% and BHP /zigman2/quotes/208108397/composite BHP -2.73% climbing 4% each.

Major oil companies also rose, with shares of BP /zigman2/quotes/207305210/composite BP -4.61% /zigman2/quotes/202286639/delayed UK:BP -4.20% up over 2% and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -3.33% /zigman2/quotes/205095589/composite RDS.A -2.84% rising 1.4%

/zigman2/quotes/210598417/delayed
UK : FTSE UK
20,910.37
-287.75 -1.36%
Volume: 476,207
Feb. 26, 2021 4:55p
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/zigman2/quotes/209008939/delayed
UK : U.K.: London
304.00 p
-4.00 -1.30%
Volume: 2.14M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£1.80 billion
Rev. per Employee
£34,706
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/zigman2/quotes/206525056/delayed
UK : U.K.: London
98.16 p
-4.69 -4.56%
Volume: 17.47M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£1.35 billion
Rev. per Employee
N/A
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/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 33.49
-0.33 -0.98%
Volume: 41.46M
Feb. 26, 2021 4:02p
P/E Ratio
19.58
Dividend Yield
4.66%
Market Cap
$186.79 billion
Rev. per Employee
$533,860
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/zigman2/quotes/214419716/composite
US : U.S.: Nasdaq
$ 109.03
-3.30 -2.94%
Volume: 1.03M
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$26.25 billion
Rev. per Employee
$92,777
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,483.43
-168.53 -2.53%
Volume: 1.25M
Feb. 26, 2021 4:56p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3935
+0.0011 +0.0790%
Volume: 0.0000
Feb. 26, 2021 4:59p
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/zigman2/quotes/210055581/delayed
US : U.S.: Nymex
$ 4.10
-0.17 -3.94%
Volume: 1,845
Feb. 26, 2021 4:52p
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/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 87.40
-2.73 -3.03%
Volume: 3.71M
Feb. 26, 2021 4:00p
P/E Ratio
14.43
Dividend Yield
5.31%
Market Cap
$144.27 billion
Rev. per Employee
$947,003
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
6,187.00 p
-293.00 -4.52%
Volume: 3.68M
Feb. 26, 2021 4:35p
P/E Ratio
13.30
Dividend Yield
6.60%
Market Cap
£103.19 billion
Rev. per Employee
£732,787
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/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 75.91
-2.13 -2.73%
Volume: 3.46M
Feb. 26, 2021 4:00p
P/E Ratio
27.47
Dividend Yield
4.11%
Market Cap
$179.06 billion
Rev. per Employee
N/A
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/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 24.41
-1.18 -4.61%
Volume: 22.96M
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
6.37%
Market Cap
$82.33 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
291.75 p
-12.80 -4.20%
Volume: 73.20M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
5.15%
Market Cap
£58.89 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,444.80
-49.80 -3.33%
Volume: 10.42M
Feb. 26, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.03%
Market Cap
£110.34 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 41.03
-1.20 -2.84%
Volume: 6.39M
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
2.71%
Market Cap
$154.27 billion
Rev. per Employee
N/A
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