* Drop in pound benefits resource exporters
* Primark-owner AB Foods rises on upbeat forecast
* FTSE 100 still well off pre-pandemic highs (Adds details, updates to market close)
By Sagarika Jaisinghani and Ambar Warrick
Sept 7 (Reuters) - Britain's blue-chip FTSE 100 index bounced off a near four-month low on Monday as Astrazeneca and GlaxoSmithKline rose on news about their respective COVID-19 vaccines, while a weaker pound helped exporters.
The FTSE 100 .FTSE ended 2.4% higher after a three-week losing streak, with Astrazeneca's AZN.L stock move providing the biggest boost to the index as the British drugmaker struck a deal with Australia's CSL CSL.AX to manufacture its coronavirus vaccine. GlaxoSmithKline GSK.L also rose on new details on the pricing of its vaccine. domestically-focussed FTSE 250 .FTMC rose for the first time in three sessions, up 1.7%, after a U.S.-technology rout spread into other sectors last week. .N
Still, trading volumes were muted on account of a U.S. market holiday.
British stocks sank further from pre-pandemic highs last week, as doubts persisted over an economic recovery.
The pound GBP= fell sharply after Britain warned the European Union that it could effectively override the divorce deal it signed unless the bloc agrees to a free trade deal by Oct. 15. probability of a deal seems to be reducing with state aid the surprising current sticking point ... This has certainly raised the stakes at a fraught time in talks," Deutsche Bank (DE: DBKGn ) strategist Jim Reid said.
Shares of homebuilders .FTNMX3720 jumped 2.3% after data showed British house prices hit a record high in August, adding to signs of a post-lockdown housing market boom. Associated British Foods ABF.L rose 0.5% after saying trading in its latest quarter exceeded expectations.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.