Markets live: FTSE 100 rises as countries lift coronavirus lockdowns
The FTSE 100 and European stocks have risen, boosted by gains in healthcare even as dire economic data lays bare the effects of coronavirus.
Britain’s FTSE 100 index was trading 0.65 per cent higher before falling slightly to trade up 0.17 per cent at 5,859 points. It climbed around 1.8 per cent yesterday. The mid-cap FTSE 250 index was down 0.82 per cent to below 16,000 points.
In Europe, the continent-wide Stoxx 600 was up 0.1 per cent. Germany’s Dax rose 0.3 per cent but edged down 0.3 per cent in afternoon trading. France’s CAC 40 fell 0.4 per cent.
The small gains across Europe mimicked sentiment in Asia. Chinese stocks climbed overnight as traders returned from a public holiday. China’s CSI 300 index rose 0.6 per cent.
The move higher was spurred by the Chinese government’s decision to fix the yuan at a broadly neutral midpoint in the possible range, so as to cool simmering tensions with the US.
US stock markets were set to open higher as more states moved to ease coronavirus lockdown measures.
Oil prices continued their days-long rising streak. Brent crude was up two per cent at $31.70 per barrel. WTI crude, the US benchmark, was up four per cent at $25.50 per barrel.
FTSE 100 investors look past dire economic data
Investors are being pulled in two different directions. On the one hand, there is optimism about moves by countries and US states to lift lockdown measures and “reopen” battered economies.
On the other, dire news about the economy keeps pouring in, reflecting the worst global slump since World War II.
The euro came under pressure after survey data showed that the single currency area suffered its worst month on record in April. It was last down 0.3 per cent at $1.081.
The pound also fell ahead of a survey that showed the construction sector juddered to a halt last month as coronavirus caused sites to close. Sterling was 0.5 per cent lower at $1.238.
However, European stocks were boosted by the healthcare sector today. The Stoxx 600 healthcare index was lifted by better-than-expected results from Denmark’s Novo Nordisk and Germany’s Fresenius Medical Care.
On the FTSE 100, ITV was the biggest riser despite reporting a 42 per cent drop in advertising revenue. Shares rose six per cent, with analysts saying the ad plunge was not as bad as some had expected.
Ocado rose more than four per cent in afternoon trading, despite the online grocer suspending guidance amid the pandemic.
Craig Erlam, senior market analyst at currency firm Oanda, said the rise in stocks was a result of “countries across Europe and parts of the US starting to ease lockdown conditions”.
He added that investors were also continuing a “blind-eye approach to the data and earnings” and were helped by “unprecedented monetary stimulus”.
US stocks falter as unemployment figures show extent of coronavirus impact
US stocks opened higher for a third day before turning negative, as figures show 20m Americans have been made redundant since lockdown began.
Investors seemed to be encouraged that lockdowns are beginning to ease across Europe and in some American states. Around 20 states have lifted restrictions which don’t meet the White House guidelines for reopening.
The Dow Jones opened up nearly 0.3 per cent higher, before falling 0.22 per cent to 23,830 points. The S&P 500 edged up 0.31 per cent before dropping 0.3 per cent.
The Nasdaq Composite was the only index to rise, trading up 0.14 per cent.
Lower oil prices are once again weighing on energy and industrial stocks. Financial companies are also down, with American Express and JP Morgan down more than 1.5 per cent.
It came after a report showed more than 20m US citizens were made redundant between March and April. The figures mean approximately 13 per cent of the 162m Americans employed in the private sector have lost their jobs since the lockdown was imposed.