At the start of a slightly quieter week when it comes to data, the European markets continued to ignore the rampant spread of the various covid variants, instead clinging onto their hopes that Biden will force through his fat stimulus package in the coming weeks.
Though in the green, the FTSE was pretty timid after the bell. A 0.2% increase just about kept the UK index above 6,500, a price it has struggled to move beyond in the last week or so.
The FTSE is being pinned back by concerns over the efficacy of the AstraZeneca PLC (LON:AZN)/Oxford vaccine, both in over-65s – a claim that has been challenged due to small sample sizes – and against the South African variant. South Africa has gone as far as suspending use of the vaccine, after a study showed it offered ‘minimal protection’ against the strain.
The UK index wasn’t alone in its timidity. The DAX also only added 0.2%; however, it is worth noting the German bourse is in a very different situation to its British peer.
Hovering a few points shy of 14,100, the DAX is essentially at an all-time high; the FTSE, on the other hand, is 400 points off its January peak, and 1,300 adrift of its own personal best.
Looking ahead to this afternoon and the Dow Jones finds itself in a similar situation to the DAX. Also facing a 0.2% increase, the Dow is in all-time high territory. Further positive progress from the Biden administration regarding its $1.9 trillion stimulus package, and the US index could be breaking records in no time.
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