London equity markets rose in early trade on Wednesday, with oil stocks lending support, as investors bet on a Democratic win in a US Senate run-off election in Georgia. At 0900 GMT, the FTSE 100 was up 0.9% at 6,668.98.
Spreadex analyst Connor Campbell said: “With Saudi Arabia agreeing to a cut in output, oil was able to strike an 11-month high, prompting some rather larger gains for BP, up 4.4%, and Shell, rising 2.5%. And when those giants are in a good mood it tends to bode well for the FTSE – the UK index rose close to 1%, returning to the 10-month peak it fell from on Monday following the announcement of Lockdown 3.0.
“It seems that investors have fully moved past Boris Johnson’s latest restrictions, even if they are the most severe since the initial lockdown in March 2020. Overfamiliarity tends to breed apathy in the markets, and that is just as true of covid-19 headlines – which are more alarming now than they have been at any point in the pandemic – as it is of lockdowns. That and it appears the pull of the New Year’s vaccine hopes are stronger than any concerns over the economic impact of these fresh measures.”
Jarvis Investment Management Ltd offers a wide range of stockbroking and administration services and solutions. Their parent company, Jarvis Securities plc (LON:JIM) is listed on AIM.