Global stock markets surge after Pfizer Covid vaccine news

Global stocks surged to record highs after the drug companies Pfizer and BioNTech announced that their coronavirus vaccine was 90% effective in trials, giving hope that economies around the world can soon return to normal.

The announcement just before midday in London prompted a flurry of activity across global financial markets.

MSCI’s all-country world index on Monday surpassed its previous record high even before the announcement as investors digested Joe Biden’s US presidential election victory, according to Bloomberg data.

The vaccine news pushed the FTSE 100 to 6,186 points, an increase of 4.7% or 276 points, adding more than £70bn to the value of the bluechip index. It was the FTSE’s biggest one-day gain since March, and its highest closing level since 12 August before fears of a second wave of Covid-19 began to weigh on markets.

On Wall Street, the benchmark S&P 500 index jumped to a record high of 3,645.99 points before retreating to a 1.17% gain. The Dow Jones industrial average and the tech-focused Nasdaq Composite index also hit new records before dropping back. The tech heavy Nasdaq ended the day down 1.5% as investors sold Netflix, Peloton and Zoom and other companies that have benefitted from a pandemic boost. The Dow ended the day up 2.95%.