FTSE 100 expected to open higher on vaccine roll-out and US stimulus optimism

The FTSE 100 looks set to open firmly in positive territory amid hopes of a global economic recovery and renewed optimism over US economic stimulus plans.

The UK’s top shares index will take its cue from Asia’s main markets, which were buoyed by the growing pace of the vaccine roll-out allied to falling rates of coronavirus infection.

Here in the UK case numbers have dropped by 25% in a week, while deaths were down by a third at 373, Sunday’s official tally revealed.

The headlines were grabbed by the Oxford/AstraZeneca jab’s seeming inability to protect against the South African mutation of the disease.

But even this was given a positive spin with the Anglo-Swedish drug giant seeking to develop a booster by autumn.

AZ is among a raft of companies reporting this week. The roster also includes travel firm TUI (), online grocer Ocado () and Royal Mail (). In the US, there are quarterlies from Coca Cola, Disney and Uber.

The health of the UK economy will be assessed when monthly GDP figures are released on Friday. Before that, we will receive data from the British Retail Consortium and RICS housing statistics.

Across the Atlantic, where President Biden is making preparations for a further economic bail-out, inflation will be in the spotlight on Wednesday in addition to the weekly jobless claims on Thursday and a smattering of consumer sentiment data on Friday.

China begins its new year-Golden Week holiday on February 11 as does Korea while Taiwan starts a day earlier on Wednesday, and most other big economies in the region will be out on Friday.

“The holiday lull is expected to drain the liquidity from the markets, making it a relatively quiet week for market watchers,” said ING.

On the markets

• Pound US$1.3732 (flat)
• Bitcoin US$38,968.12 (up 1.1%)
• Gold US$1,813.70 (+0.04%)
• Brent crude US$59.85 (+0.51%)

6.45am: Early Markets – Asia / Australia

Stocks in the Asia-Pacific region were mostly higher today as China’s State Administration for Market Regulation released new anti-monopoly guidelines that target internet platforms.

The Hang Seng index in Hong Kong gained 0.26% while the Shanghai Composite in China rose 1.02%.

In Japan, the Nikkei 225 surged 2.12% but South Korea’s Kospi dipped 0.79%.

Shares in Australia surged to their 11-month highs, with the S&P/ASX 200 closing 0.59% higher.

READ OUR ASX REPORT HERE

Proactive Australia news:

() () is trading higher on receiving strong assays of up to 186 g/t gold from the first 11 drill holes completed as part of phase-I drilling on the Elizabeth sector of Blackdome Elizabeth Gold Project in Canada.

() (FRA:RNF) has received broad high-grade assays from the final seven holes of the maiden 2020 exploration program at Palm Springs Gold Project in Western Australia with mineralisation extended over 360 metres along strike to the southwest of Butchers Creek open-pit.

() (FRA:4SF) has intersected extensive zones of shallow gold mineralisation in wide-spaced aircore drilling at its North Kanowna Star Project (NKS), 29 kilometres southeast of the proposed mill and infrastructure of the Bardoc Gold Project, in Western Australia.

() () (FRA:1X8) has brought the marketing and sales function of cannaQIX® inhouse, taking over from its commercial partner Doetsch Grether in Switzerland, following a growing trend of direct inbound sales enquiries and interest in the product.

() (FRA:M6N) has become a gold producer after it successfully recommissioned the Davyhurst Gold Process Plant, together with its associated site infrastructure, with the first gold poured on Sunday, February 7, 2021.

() (OTCMKTS:EEYMF) (FRA:N9F) says ‘Morila the Gorilla is back’ with a new mineral resource estimate of 42.6 million tonnes at 1.6 g/t gold for 2.2 million contained ounces, up from 1.2 g/t gold for 1.3 million ounces.

() has received better than expected ionic leach soil sample assays further highlighting the large, top-ranked Apollo and Atlas targets within the wider Paterson Central Project in Western Australia, north of the Havieron gold-copper discovery.

() has entered into a binding term sheet for a farm-in and joint venture agreement with Scorpion Minerals Ltd (ASX:SCN) for two tenements E20/953 and E20/948, totalling 384 square kilometres, adjacent and contiguous to Fenix’s recently commissioned Iron Ridge Project.

() (FRA:8EE) has delivered further high-grade cobalt, nickel, copper and silver result from a recent grab sampling program at the Punta Corna Project in northern Italy.