Markets are climbing back up again after vaccine news – but who is benefitting?

With the latest jump in stock prices, there are two positive messages but also a warning, writes Hamish McRae

News of the Covid-19 vaccine has boosted share prices (AFP/Getty)

The optimists are right and the pessimists are wrong. That at least has been the conclusion of the global financial community about the possibility of having an effective vaccine against Covid-19 by the end of the year.

To take just one measure, FTSE 100 share prices, Monday’s jump of 5.72 per cent was the ninth largest one-day rise in the Footsie since it was created in 1987. And the data company Refinitiv calculates that the jump of 85 per cent in the Rolls-Royce share price is the largest rise for any company since 1987 too.

So, huge relief. But what does it really say, aside from the fact that global investors were pretty desperate for some good news? There are, I suggest, two positive messages but also a warning.