UK stocks begin first trading day out of EU up 1.5%

Boris Johnson's remark on the Covid-19 situation and potential tightening of restrictions is limiting gains

Britain's stock market jumped more than 1.5 per cent on Monday, the first trading day since the country left the EU's single market and customs union.

London's benchmark FTSE 100 index rallied 1.54 per cent to 6,560.33 points, having last traded on New Year's Eve ahead of Britain's formal departure.

In the eurozone, Frankfurt's DAX 30 rose 1.2 per cent to 13,885.07 points and the Paris CAC 40 gained 1.3 per cent to 5,625.44.

British shares jumped on Monday in the first trading session of the new year as optimism around vaccine rollouts and a jump in oil prices helped boost the export-heavy index after it breached multi-year lows in the previous year.

Ladbrokes owner Entain surged 26.2% to be the top gainer on the FTSE 100 after saying it received proposals from US casino operator MGM Resorts for a possible offer.

However, limiting gains was Prime Minister Boris Johnson's announcement on Sunday that tougher lockdown restrictions were probably on the way as Covid-19 cases keep rising.

Plumbing parts distributor Ferguson Plc gained 0.2% after it agreed to sell its UK-focused business to private investment firm Clayton, Dubilier & Rice for about 308 million pounds ($421.56 million).

Drugmaker AstraZeneca jumped 1.3% after Britain was set to roll out its low-cost and easily transportable Covid-19 vaccine, the second vaccine candidate to be distributed.