UK stocks opened higher on Wednesday after a vaccine candidate for Covid-19 showed promising results in early trials and after strong trading in the US driven by a good start to the Q2 results season and hopes for more support from the Federal Reserve.
In early trading the FTSE 100 index was up 55.84 points, or 0.9%, at 6,235.59.
Pharmaceutical company Moderna said a proposed vaccine for the disease had sparked an immune responses in all volunteers participating in an early safety trial.
Luxury fashion retailer Burberry (BRBY) fell 4.5% to £14.87 after its sales slumped 48% in the first quarter, or 45% on a like-for-like basis.
Burberry said it expected the pandemic to continue to hurt revenue in the second quarter, with like-for-like sales seen falling 15-20%.
Revenue for the 10 months through June rose 16% to £2.61 billion, including a 9% rise in the latter four months of that period.
Dixons Carphone also forecast more pain ahead as ongoing pressure on the economy from the pandemic continues to sap consumer confidence.
Premier Oil said discussions with a subset of its creditors regarding a long-term extension to credit maturities were underway, with an aim to agree terms by the end of July.
Homewares manufacturer Portmeirion (PMP:AIM) added 1.3% to 363.68p despite it forecasting a first-half loss after its like-for-like sales slumped 20% owing to the closure of its retail stores during lockdown.