FTSE 100 up on vaccine hopes, but Boohoo and Novacyt weaken

We bring you an update on today's winners and losers ahead of US second-quarter results season. 

Renewed hopes that progress toward a viable coronavirus vaccine is being made helped UK markets higher on Monday.

US drug maker Gilead Sciences (NASDAQ:GILD) on Friday highlighted promising data in ongoing trials for its drug remdesivir.

Comments from the chief executive of German biotech BioNTech (NASDAQ:BNTX), regarding the potential for its vaccine candidate to seek regulatory approval by the end of the year, added to the positive mood.

The FTSE 100 index climbed by more than 1% in early trading and has found support all day. US markets ended higher on Friday and have extended gains at the opening bell today.

In company news, UK outsourcing firm G4S (LSE:GFS) flagged resilient June trading in the face of Covid-19. As a result, first-half profits, now scheduled to be confirmed in the week beginning 20 July, are expected to comfortably exceed current City forecasts.

G4S, which is selling its conventional cash-handling business, is now largely focused on the provision of security services enhanced by technology. Its shares rose by more than 9% in early trading, although they are down around 40% year-to-date. 

Wizz Air (LSE:WIZZ) announced that its Abu Dhabi joint venture would start operations on 1 October, with six new routes connecting the UAE capital with Europe and Egypt.

The joint venture between the Eastern European budget airline and Abu Dhabi state holding company ADQ, will eventually use a fleet of six new Airbus A321neo aircraft. Wizz Air shares were little changed in mid-morning trading having fallen by just over 15% in 2020. 

Shares of AIM-listed Covid-19 test maker Novacyt (LSE:NCYT) added to share price gains of 1,800% year-to-date as it issued a half-year trading update. 

Sales have grown by more than 900% to €72.4 million (£63.3 million) following heavy demand for its coronavirus testing product. Management expects sales for the second half of the year to be greater than the first half. Growing cash generation now sees the Paris-based company reviewing its capital allocation policy.

Online clothing retailer Boohoo (LSE:BOO) remained under pressure. Its shares fell by 15% and are down by over 40% since the start of July. The company is in the spotlight given concerns regarding working practices. 

In the US, Walt Disney (NYSE:DIS) shares are in focus. Its Florida Magic Kingdom and Animal Kingdom parks reopened on Saturday having closed back in March due to the Covid-19 pandemic.  

Other parks in Asia have also began reopening, with the firm's Paris outlet expected to follow soon. Disney shares are up 7% in July having fallen by over 15% year-to-date. Its Disney Plus streaming service commenced UK operations back earlier this year following a launch in the US during 2019. 

This week sees the US second-quarter earnings season kick-off in earnest. Disney rival Netflix (NASDAQ:NFLX) is expected to report results late Thursday. Banking giant JPMorgan (NYSE:JPM) has its figures out tomorrow. 

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While streaming services are expected to prove coronavirus winners as population lockdowns left consumers stuck on the sofa, banks and their exposure to Covid hit customers are not. Netflix shares are up over 65% year-to-date, JP Morgan shares are down close to a third.