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FTSE 100 adds £60bn of value to hit 10-month high

The FTSE 100 has hit its highest level in ten months, building on a recovery that has lagged its peers during the coronavirus crisis to date.

The blue-chip index added 229 points, or 3.5%, on Wednesday to close at 6,841.

When points are converted to pounds, it meant almost £61bn was added to its collective market value in the session.

It was banking and energy stocks – battered by COVID-19 to date – that gained the best traction.

Market analysts pointed to several factors helping many of its constituent companies, with dollar-earners doing well as it looked likely that the Democrats would take control of the US Senate in the election run-off.

It was seen as making additional stimulus for the US economy more likely as Joe Biden prepares to occupy the White House later this month and replace Republican Donald Trump’s administration.

That, coupled with promises of an oil output cut by Saudi Arabia to prop up prices, helped energy and mining stocks gain with BP and Royal Dutch Shell adding more than 6.5% each.

HSBC, Standard Chartered and Barclays led the winners – gaining up to almost 10%.

Hopes that vaccines will help lift the UK economy from the doldrums, despite new national lockdowns, have driven a recovery in UK shares since November. Read from source….