Markets boosted as Oxford vaccine rollout begins – business live

Rolling coverage of the latest economic and financial news as investors bet on the success of the Oxford/AstraZeneca vaccine

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3.07pm GMT

Markets across Europe rose on the first trading day of 2021, despite the threat of tougher lockdowns. The distribution of Covid vaccines including the Oxford/AstraZeneca jab from Monday raised hopes that a recovery was in sight.

The FTSE 100 jumped nearly 3%, making it the largest riser among its European peers. Entain shares surged 28% and led the blue chip index after the owner of the Ladbrokes and Coral betting brands said 8bn takeover bid from its US joint venture partner MGM Resorts International significantly undervalued the business.

2.52pm GMT

Reporters say PM Boris Johnson is set to address the UK at 8pm today, in what is expected to result in a tougher national lockdown.

PM is addressing nation at 8 tonight. Parliament to be recalled Wednesday. Tough national lockdown to be announced

Parliament being recalled on Wednesday to discuss measures UK govt wants to enforce - sounds like, just as Sturgeon has announced in Scotland, England heading back to set of restrictions like in March

2.50pm GMT

DATA FLASH: US manufacturing PMI for December has come in at 57.1 in December, up from 56.7 in November.

That marks the steepest improvement in US manufacturing activity in more than six years - since September 2014. It was also higher than the flash reading of 56.5.

Manufacturers reported a strong end to 2020, with production and order books continuing to grow, albeit with the rates of expansion slowing as a result of rising virus case numbers and related restrictions.

Producers of consumer goods reported a marked downturn in orders and production, reflecting weakened consumer expenditure amid the resurgence of COVID-19.

2.36pm GMT

Well, that was short-lived. The Dow is now reversing early gains and is down 0.1%.

2.33pm GMT

U.S. markets open higher https://t.co/oIUJosVeYT pic.twitter.com/kHBziyNJqj

2.32pm GMT

The S&P 500 and Dow have hit record highs at the open, as US stocks follow European markets higher on the first trading day of 2021:

2.29pm GMT

Scotland's lockdown has not done any favours for the pound, which is trading lower by around 0.3% against the US dollar (despite dollar weakness) at 1.3627, and 1% lower versus the euro at 1.1075.

2.07pm GMT

BREAKING: Scotland will be placed under national lockdown for January starting from midnight tonight, Reuters is reporting.

There will be a legal requirement to to stay at home, except for essential reasons, similar to the lockdown introduced in March.

Related: UK coronavirus live: Sturgeon announces full lockdown for Scotland from tonight

2.02pm GMT

The US dollar has slumped as investors become more willing to take on risk in light of the vaccine rollout.

The dollar index - which measures the greenback against a basket of other currencies - is currently down 0.4% at 89.537.

Gold prices have started to rise once again as traders are concerned about the possibility of further lockdowns.

British Prime Minister Boris Johnson could be announcing tougher lockdown measures this week.

1.25pm GMT

While vaccine hopes have buoyed markets, Covid continues to hurt major sectors like hospitality, which have shed thousands of jobs during the pandemic.

Related: Covid pandemic drives 163% rise in restaurant job losses in UK in 2020

1.12pm GMT

Oil investors are keeping a close eye on the Opec meeting today. That could explain why markets are not really reacting to news of the oil tanker seizure, which would usually trigger geopolitical concerns and push up prices.

Opec producing nations are reportedly expected to announce production cuts for February, which could help prop up prices that have been hard-hit by reduced fuel demand during the Covid crisis.

1.03pm GMT

Brent crude prices have lost some steam since this morning, when they were up 2.2% at around $52.94 per barrel.

The global oil benchmark is now nearly at dollar lower, down around 0.1% at $51.74. That's despite news that Iran has seized a South Korean tanker.

Related: Iran says it has seized South Korean tanker as tensions with US mount

12.21pm GMT

Time to check back in on US futures, which are pointing to record highs for the Dow and S&P at the start of trading this afternoon:

12.04pm GMT

Hundreds of Google employees have reportedly formed a union, in a rare move at a Silicon Valley tech firm, which is expected to raise tensions with the company's leadership.

11.39am GMT

AJ Bell investment director Russ Mould comments on the FTSE 100's surging start to 2021:

The FTSE 100 started 2021 with a bang. Surging more than 2% higher and closing on the 6,700 mark amid M&A news and confirmation that roll-out of the AstraZeneca coronavirus vaccine will commence today.

MGM's blockbuster bid for gambling group Entain and plumbing firm Ferguson's sale of its UK business play second fiddle to the vaccine news which is an even more important focus for the markets given the more severe restrictions necessitated by a more infectious strain of Covid.

11.18am GMT

The pan-European Stoxx 600 is set for its largest one -day gain since 9 November, after rising 1.6% this morning.

It comes as the largest-listed stocks make gains across the UK and mainland Europe:

11.14am GMT

Tougher lockdowns across British hit shopper footfall across the country last week, having fallen more than 23.% on the previous week.

10.55am GMT

Bitcoin prices have fallen sharply this morning, dropping by around $4,000 from the record peak it hit on Sunday.

The cryptocurrency is currently worth around $29,180, but that is around 16% below the $34,800 reached on its 12-year anniversary yesterday.

10.34am GMT

BREAKING: The German government and state authorities have agreed on extending lockdown until 31 January.

That's according to Reuters, which is citing local newspaper Bild.

10.14am GMT

UK lenders approved nearly 105,000 new mortgages in November, the highest number since the global financial crisis in August 2007.

9.58am GMT

Markets are starting the year in the green. Everything's going up https://t.co/gjiQkbxY4U pic.twitter.com/R3YnMspxDL

9.55am GMT

The FTSE 100 is rallying this morning, up nearly 3% and leading the pack of European peers, which are all still in positive territory.

Though it's worth keeping in mind that the blue chip index is still roughly 1,000 points below January 2020 levels, before Covid-19 was declared a pandemic.

9.40am GMT

DATA FLASH: UK manufacturing activity rose to its highest level since November 2017 last month. Manufacturing PMI rose to 57.5 in December compared to 55.6 a month earlier.

A reading above 50 signals expansion.

#PMI shows#UK #manufacturing activity at 37-month high in December despite restrictions as lifted by stockpiling ahead of ending of UK-EU transition. Also lifted by supply chains lengthening. PMI at 57.5 (flash 57.3; 55.6 in Nov). Output growth slowed; total orders growth up

The manufacturing PMI rose to its highest level in over three years in December, mainly reflecting a boost from last-minute preparations before the end of the Brexit transition period.

Customers, especially those based in the EU, brought forward purchases, boosting sales temporarily.

9.33am GMT

The pound is losing ground to the euro this morning, falling more than 0.5% to around 1.1126

Not only is the euro gaining on the back of strong manufacturing PMI data, but sterling's post-Brexit deal rally is facing. The pound jumped in the wake of news that UK and EU officials had struck a last minute trade deal on Christmas Eve.

9.12am GMT

DATA FLASH: Eurozone manufacturing PMI rose to 55.2 in December from 53.8 in November.

It was slightly below flash estimates of 55.5 but is still the highest reading since May 2018. The bloc's performance was boosted by production activity in Germany, the Netherlands and Ireland.

The solid performance of manufacturing amid the tightening of COVID-19 restrictions in the closing months of 2020 represents a major contrast to the lockdowns earlier in the year, with factories acting as a crucial support to the economy as the service sector is hit by tough social distancing measures.

The strong manufacturing growth is thanks to a large extent on booming demand for German goods, which drove most of the increase in eurozone production during December, in turn buoyed by rising exports.

9.01am GMT

Germany's manufacturing sector, which accounts for around a fifth of its economy, expanded last month, with the PMI rising to 58.3 in December from 57.8 in November.

That was slightly below expectations based on the flash estimate of 58.6. However, it is still the highest reading since February 2018.

8.51am GMT

More manufacturing PMI data, this time from France, has come in at 51.1 for December.

That's in line with expectations and higher than November's reading of 49.6.

8.48am GMT

DATA FLASH: Italian manufacturing PMI shows the industry was still in expansion territory last month.

However, the reading has fallen short of expectations, coming in at 52.8 in December versus Reuters forecasts for 53.7.

8.41am GMT

Entain shares are topping the FTSE 100 after rising 28% and hitting a record high of 1,455p this morning.

It comes after the owner of the Ladbrokes and Coral betting brands said on Monday an 8bn takeover bid from its US joint venture partner MGM Resorts International significantly undervalued the business, Jasper Jolly writes.

Related: Ladbrokes owner Entain rejects 8bn bid from US partner MGM

8.24am GMT

DATA FLASH: Spain's manufacturing sector grew slower than thought in December.

The final reading of manufacturing PMI came in at 51.0, which is lower than analyst expectations for 52.8. However, that is higher than 49.8 recorded in November.

8.20am GMT

Here's a photo of Brian Pinker - who has become the first person in the world to receive the Oxford/AstraZeneca vaccine - which will undoubtedly be making the rounds on newscasts this morning.

'I'm so pleased to be getting the COVID vaccine today and really proud it is one that was invented in Oxford.'

82-year-old Brian Pinker became the first person in the world to receive the new Oxford AstraZeneca vaccine this morning at @OUHospitals. pic.twitter.com/nhnd3Sx97m

8.14am GMT

AstraZeneca shares are not among the top risers on the FTSE 100, but the stock is still up 1.7% this morning.

It comes as the first dose of the vaccine it created with Oxford university was given to a patient this morning. It is part of the UK's larger inoculation efforts:

Brian Pinker aged 82 who is on dialysis for kidney disease is the first person to receive the Oxford University-Astrazeneca vaccine at Oxford University Hospital as the NHS becomes the first health service in the world to deliver this vaccine

8.03am GMT

Major indexes have had a strong start, all up around 1% at the start of trading:

7.56am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A recent rise in Covid cases in countries like the UK, US and Japan, has failed to dampen market enthusiasm on the first full trading day of 2021.

European Opening Calls:#FTSE 6527 +1.03%#DAX 13826 +0.78%#CAC 5600 +0.88%#AEX 630 +0.80%#MIB 22342 +0.49%#IBEX 8156 +1.02%#OMX 1888 +0.68%#STOXX 3581 +0.81%#IGOpeningCall