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Ideas Farm: UK flicks the Vs

After a terrible year, could UK stocks be heading for a Santa rally?
Ideas Farm: UK flicks the Vs
  • Three reasons the UK indices are storming ahead this month
  • One reason there could be more good news to come
  • Hope for a Santa Claus rally
  • Loads of idea generating data

Prospects suddenly seem to be looking brighter for UK markets. Since bottoming out at the end of October, the much maligned FTSE 100 index is up 14 per cent while the 250 has gained 13.5 per cent. The principal reasons for the change of heart can be summed up with three Vs, and there could also be a fourth V on the way soon.

Firstly, V is for vaccines. Positive late-stage vaccine trial results from both Pfizer and Moderna have given all markets, but especially the UK, a shot in the arm this month. As well as these trials, there are many other vaccine candidates being tested, which could have even better results. While there is much work to be done before an effective Covid-19 vaccination programme is rolled out, there is plenty of effort being made to try to ensure the light at the end of the tunnel becomes bright blue sky.

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