Oxford vaccine’s success lifts FTSE 100 with BA, Rolls Royce and Brent oil up

Stocks battered in the Covid-19 pandemic rallied again today as the results of AstraZeneca's Oxford vaccine trial helped to give markets a fresh confidence boost.

The encouraging update from the pharmaceuticals giant showed an efficacy rate of 90% when the vaccine is given as a half dose followed by a full dose at least one month apart. 

Critically, the vaccine being developed with the University of Oxford is cheaper and easier to store than those from Pfizer/Biontech and Moderna, who have reported 95% protection.

Investors continued their rotation into value stocks following the update, with shares in British Airways owner International Airlines Group and engines firm Rolls-Royce up by 3% or more. 

A 2% rise in the price of Brent crude also boosted oil giants BP and Royal Dutch Shell.

The FTSE 100 index added 22.7 points to 6374.4, having rallied by 14% so far this month on rising hopes that life can start to return to normal next year.

The domestic-focused FTSE 250 index added 128.8 points to 19,635.7, with stocks in leisure, transport and hospitality further boosted by expectations that Boris Johnson will today confirm that England's second lockdown is to end on December 2.

The controversial 10pm curfew for pubs and restaurants is also being eased, contributing to a 6% jump for shares in All Bar One pubs chain Mitchells & Butlers. 

Shares in The Gym Group, which has 175 sites across the UK, rose 4%. The wider market optimism was not reflected in AstraZeneca shares, despite CEO Pascal Soriot calling the update an “important milestone” in the pandemic fight. 

The trial involving 23,000 participants in the UK and Brazil showed only 62% efficacy when given as two full doses at least one month apart, leading to an average 70%.

Oxford Biomedica, which has an 18-month agreement to provide AstraZeneca with multiple large-scale batches of the vaccine from its Oxbox manufacturing centre, rose 8p to 876p.