FTSE 100 set to record weekly gains on earnings, vaccine optimism

(Reuters) – London’s FTSE 100 was set to record a weekly gain of 1% on Friday, after falling for three consecutive weeks, as corporate earnings improved and faster vaccine rollouts supported optimism around a quicker pace of economic revival.

The blue-chip FTSE 100 index dipped 0.1% on Friday but was on pace to gain 1.06% for the week with banks and travel stocks being the top gainers. The mid-cap index gained rose 0.2%.

The Bank of England gave British lenders at least six months’ breathing space on Thursday before negative interest rates are a possibility, focusing instead on the prospects of a post-lockdown rebound.

Progress in vaccine distribution and expectations of a large stimulus by U.S. President Joe Biden’s administration helped global markets trade near their record highs.

Insurer Beazley jumped 7.2% and was the top gainer on the mid-cap index after it said it was confident of returning to profitability in 2021.

(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing by Amy Caren Daniel)