FTSE-100 dips after surging on AstraZeneca's Oxford Uni vaccine

The FTSE-100 Index paused for breath after yesterday's surge on hopes that Oxford University's covid vaccine would produce good test results soon.

UK markets leaped yesterday afternoon on reports trials for the vaccine, backed by AstraZeneca, were going well, with a likely positive write up on Phase I trials as early as today in the medical journal The Lancet. That news is now not expected until Monday, and AZ shares slipped back 0.5% today.

Today shares fell slightly with the FTSE closing 38.85 points down at 6253.8 after UK unemployment data came in surprisingly similar to last month's and the European Central Bank held back from taking any dramatic action at its rate-setting meeting. Christine Lagarde and her cohorts kept rates on hold and did not expand the covid emergency bond buying package. Separately, the e750 billion covid rescue fund to be paid for by EU taxpayers for the worst-affected areas still looks nowhere nearer being approved but Lagarde said the ECB assumed it would get done eventually.

Chinese economic data claimed GDP growth for the second quarter was 3.2% - beating forecasts of 2.5% and bouncing back from the 6.8% slump of the first quarter. Retail sales there also showed an improving picture, although not quite so impressive; the decline of 2.8% in May narrowed to 1.8% but was still a decline nevertheless.

But all that was ignored as the Shanghai Composite Index plunged nearly 5% after state media criticised the drinks company Kewichow Moutai, sending its shares down 8%. People's Daily said its liquor was expensive and often used to bribe people. The bizarre intervention was taken by markets as an effort by Beijing to cool down the stock market. Large numbers of retail investors have been taking on debt recently to invest in shares, troubling officials.

Morgan Stanley's earnings shot the lights out with revenus of $13.4 billion for the second quarter against City forecasts of $10.4 billion thanks to soaraway trading income in the choppy covid markets. Bond trading nearly doubled and investment banking fees increased nearly 40%. But, after breakneck numbers from JPMorgan already this week, the reaction in share prices was muted, with MS up only 3% and Barclays - the UK's only real trading shop - actually down a percent.

The Dow Jones Industrial Averge was off 123 points at 26749 as the FTSE-100 closed.

GVC fell 4% after the betting giant announced its founder Kenny Alexander had surprisingly quit. The owner of Ladbrokes Coral said his departure would take effect from tomorrow and his chief operating officer Shay Segev would take over.

Along with Melrose and Smith & Nephew, it led the FTSE-100 fallers board.

Scottish & Southern Energy, WPP and Icap ruled the roost among the risers, all gaining 2%. SSE's gain was prompted by its announcement that trading was broadly in line with expectations despite covid.