Spreadex Market Update

AstraZeneca vaccine update harms sterling, but FTSE hits 3-month high



Much like on Tuesday, pronounced losses for the pound helped the FTSE top the table of the session’s highflyers.

It appears that while the UK blue chip index, and its mid-cap sibling, enjoy the optimism surrounding the country’s post-covid comeback, sterling has been saddled with concerns over the vaccine programme.

Compounding fears that arose from Sage’s warning yesterday that the UK’s vaccine rollout could severely slow down in the coming weeks was the latest Oxford vaccine update from the MHRA.

The regulator has stated that under-30s should be offered an alternative to the AstraZeneca jab where possible, due to concerns over the link between the vaccine and blood clots. This is better than an outright ban on use of the vaccine for that demographic but could still impact the UK’s intended easing roadmap.

Softening the blow of this somewhat was news that the first wave of the Moderna vaccine had finally hit UK shores.

This sent the pound down 0.4% against the dollar, and back the wrong side of $1.377, and 0.7% lower against the euro, leaving it at a one-month nadir of €1.1568.

In response, the FTSE climbed 1%, touching 6,890 for the first time in 3-months. If it can heft itself above 6,900, it will almost be back to the pre-covid lockdown levels seen in February 2020.

As for AstraZeneca itself, the pharma firm fell 0.7% to a near 2-week low of £71.39.

Elsewhere things were rather quiet. The DAX dipped below 15,200 as it fell 0.2%, while the CAC eked out a 0.1% increase.

Once again the Dow Jones expressed a lack of interest in building on its recent highs. Instead, a 0.1% rise left the Dow a point or two above 33,450, and short of its 33,500-plus peak.

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