THE FTSE 100 rose this morning after news a Covid vaccine developed in the UK can stop up to 90% of people from getting the virus.
The London stock market went up by 0.59% to 6,388.86 when it opened at 8am this morning.
The FTSE 100 saw an uplift this morning after news a UK Covid vaccine is found to be a success [/caption]
It’s the third Covid-19 vaccine to have positive preliminary results in three weeks.
The footsie index tracks the performance of the UK’s 100 biggest companies.
The markets hope that a vaccine will stabilise the economy.
Today’s boost to the stock exchange isn’t as big as it was when Pfizer’s announced its coronavirus jab showed 90% effectiveness, causing the FTSE 100 to jump by 5.5%.
How the FTSE 100 falling affects your personal finances
FALLS in the stock market can affect your finances in a number of ways, here we explain how.
Pensions – If you save cash into a pension scheme where the provider invests your money, you’ll likely see the value of your pension drop when the FTSE 100 falls.
But keep in mind that with retirement savings, you’re investing for the long-term so the drop in value isn’t likely to be permanent.
Instead, you’ll see your retirement savings grow again once the stock market recovers.
Savings and mortgages – There is no direct link between the stock market and your mortgage or savings accounts.
But if panic on the stock market spreads to the wider economy, the Bank of England may cut interest rates. Interest rates are currently held at 0.1%.
This means your mortgage is likely to get cheaper, while savers will suffer from lower interest rates.
We’ve explained how the interest rate cut will affect your finances here.
Sterling – The value of the pound often rises if the FTSE 100 falls.
This is because many of the firms on the index earns a significant amount of cash in the US.
But again, exchange rates are also volatile and there are many factors that make them rise and fall.
There are other factors that affect the FTSE 100 which may have caused investors to hold back.
This afternoon, Prime Minister Boris Johnson is expected to announce what coronavirus restrictions will be in place in England after lockdown ends on December 2.
A decision on the reopening of the retail and leisure industry ahead of Christmas could see an even bigger jump to the markets.
The Oxford/AstraZeneca vaccine – called ChAdOx1 nCoV-19 – uses a harmless, weakened version of a common virus which causes a cold in chimpanzees.
Britain has already ordered 100 million doses – which is cheaper and easier to store than Pfizer and Moderna’s.
It has also been shown to work in different age groups, including the elderly, and there were no hospitalised or severe cases in anyone who received the jab.
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Four million expected to be ready before the end of the year, if it gets regulatory approval.
On March 12, 2020, the markets crashed 10.9% in a day to finish at 5,237.00 points, in one of the worst days since Blank Monday in 1987.