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European stock markets rise

stock markets rise

The FTSE 100 gained 0.5%, while the CAC 40 rose 0.9% and the DAX added 0.6%

European stocks gained ground in early trade on Monday, boosted by positive vaccine news from AstraZeneca and the University of Oxford.

AstraZeneca on Monday said a vaccine it had developed with Oxford showed a 70% efficacy rate in large-scale trials. When two doses are applied, the efficacy rate rose to 90%.

It marks the third announcement in three weeks about a working COVID-19 vaccine. Pfizer and BioNTech were the first to announce they had a working vaccine candidate, while Moderna followed with a similar statement a week later.

AstraZeneca’s results show its vaccine appears to be less effective than Pfizer’s and Moderna’s jabs. Shares in AstraZeneca fell 1.5% in London.

Still, rising vaccine hopes helped to cheer European investors.

In the latest stock market news, the FTSE 100 rose half a percent at the open, while the CAC 40 was up 0.9% in France and the DAX rose 0.6% in Germany.

Investors are set to get more insight into the impact of second lockdowns on Europe’s economies as flash PMIs roll-in this morning. Data for France showed the country’s economy contracted sharply in November.

In the UK, Prime Minister Boris Johnson is set to announce the next steps on COVID-19 restrictions later today. The current national lockdown is due to end on 2 December. Press reports over the weekend suggest Johnson will announce a tougher new tier systems but say households will be allowed to mix over the Christmas period.

Stocks looked set for a higher open in New York later today. S&P 500 and Dow Jones futures were half a percent higher and Nasdaq futures were up 0.3%.

Asian stocks rose overnight, with strong gains for mainland Chinese markets. The Shanghai Composite rose 1% and the Shenzen Component rallied 0.7%. Elsewhere, the Hong Kong Hang Seng was up 0.1%, South Korea’s KOSPI surged 1.9%, and the ASX 200 added 0.3% in Australia. Markets were shut in Japan for a national holiday.

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