U.K. stocks surged on Monday, buoyed by a rally for the mining sector as metals futures jumped.
The FTSE 100 UKX, +2.90% rose 2.6%, its best single day of gains since the 4.7% surge after U.S. drug company Pfizer first announced the effectiveness of its coronavirus vaccine.
Mining giant Rio Tinto RIO, +5.83% had the largest upward pull on the FTSE 100, as miners including Polymetal International POLY, +6.62%, Fresnillo FRES, +9.83%, Glencore GLEN, +7.40% and Anglo American AAL, +6.39% all surged with commodity prices in demand. The dollar fell to its lowest level since April 2018, and there were big gains for gold GCF21, +1.93%, copper HG00, +2.40%, silver SI00, +4.04% and platinum PL00, +3.35%.
The gains for commodities came on hopes for the global economy. The U.K. on Monday become the first nation to inoculate with the vaccine made by drug company AstraZeneca AZN, +2.94%, which also posted strong gains.
U.S. stock futures ES00, +0.55% also gained ground on the first trading day of 2021.
U.K. banks including Natwest Group NWG, -3.43% and home builders such as Taylor Wimpey TW, -2.44% slipped, a sign traders were less optimistic about companies more exposed to the U.K. economy than the global one.
Shares of U.K. gaming company Entain ENT, +28.41% jumped 27% to 1,429 pence, after rejecting the proposed 1,383 pence per share bid from MGM Resorts MGM, +1.03% that valued the company at £8.09 billion. Entain, the owner of brands including Ladbrokes, said the proposal significantly undervalues the company and its prospects. Entain also asked for “additional information in respect of the strategic rationale for a combination of the two companies.”
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