Pound hits 33-month high over $1.39 as Covid vaccine optimism lifts markets – business live


Rolling coverage of the latest economic and financial news

7.25am GMT

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

Optimism over the global economic recovery is continuing to lift markets at the start of a new week.

Related: UK economy hit by record slump in 2020 but double-dip recession avoided

While the economy is likely to have escaped a double-dip recession, the data for the coming months will likely reverse lower, reflecting the effects of the third lockdown that began in January.

The impressive pace of this program should allow UK PM Boris Johnson to release the country from lockdown sooner rather than later and get the economy moving.

Related: UK reaches milestone of offering first Covid vaccinations to 15m people

European Opening Calls:#FTSE 6633 +0.65%#DAX 14143 +0.67%#CAC 5739 +0.63%#AEX 680 +0.44%#MIB 23631 +0.94%#IBEX 8115 +0.74%#OMX 2036 +0.56%#STOXX 3716 +0.55%#IGOpeningCall

The market environment remains very much sweet for risk investors. Combined to prospects that things could only get better from where we are, the whole setup is absolutely supportive of the continuation of the record run in risk assets, including stocks of all sizes, bonds, junk bonds and alternative investment vehicles.

The financial marketplace looks nothing else than a huge ‘eat whatever you can’ buffet – and we’ll see what happens when inflation kicks in.

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