U.K. stocks surged on Monday, buoyed by a rally for the mining sector as metals futures jumped.
The FTSE 100
rose 2.6%, its best single day of gains since the 4.7% surge after U.S. drug company Pfizer first announced the effectiveness of its coronavirus vaccine.
Mining giant Rio Tinto
had the largest upward pull on the FTSE 100, as miners including Polymetal International
and Anglo American
all surged with commodity prices in demand. The dollar fell to its lowest level since April 2018, and there were big gains for gold
The gains for commodities came on hopes for the global economy. The U.K. on Monday become the first nation to inoculate with the vaccine made by drug company AstraZeneca
which also posted strong gains.
U.S. stock futures
also gained ground on the first trading day of 2021.
U.K. banks including Natwest Group
and home builders such as Taylor Wimpey
slipped, a sign traders were less optimistic about companies more exposed to the U.K. economy than the global one.
Shares of U.K. gaming company Entain
jumped 27% to 1,429 pence, after rejecting the proposed 1,383 pence per share bid from MGM Resorts
that valued the company at £8.09 billion. Entain, the owner of brands including Ladbrokes, said the proposal significantly undervalues the company and its prospects. Entain also asked for “additional information in respect of the strategic rationale for a combination of the two companies.”