The FTSE 100 opened higher on Tuesday as markets continued to react well to the ongoing vaccine news.
The FTSE 100 opened 55 points higher or 0.87% to 6389 in early trading, which was boosted by growth in travel stocks, energy companies and hospitality firms.
In Europe, markets also opened higher. Germany’s DAX increased by 0.85% and France’s CAC was up 1%.
Fiona Cincotta at Gain Capital said: “The dominant driving force behind the market has been progress in vaccine development.”
Top risers on Tuesday morning included Rolls-Royce (+6.3%), airline group IAG (+4.5%), and oil giant BP (+3.6%).
The FTSE 250 also saw gains at the opening bell. Shares in TUI gained almost 10%.
Markets were also cheered by signs that US President Donald Trump is accepting that he will be replaced by Joe Biden in January.
“After much delay the General Services Administration has signalled that Joe Biden and his team can begin the formal transition process ahead of January’s inauguration, a move that Donald Trump gave his approval despite insisting he will continue with his unfounded claims of voter fraud in order to overturn the result,” said Connor Campbell from Spreadex.
“The key thing for the markets is that the smoother the transition, the easier it will be in theory for the new administration to hit the ground running in January – vitally needed given the out-of-control American covid-19 situation, and the planning needed for a nationwide vaccine rollout.”