Rallying travel stocks lift FTSE 100 – CityAM : CityAM
London’s FTSE 100 climbed during opening exchanges today, lifted by a rally among travel stocks that helped to reverse yesterday’s poor performance.
The capital’s premier index gained 0.44 per cent to hit 7,047.52 points, cancelling out losses registered on a choppy day on London markets yesterday.
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The likes of aerospace engineer Rolls Royce and British Airways parent company IAG received a bump from reports that pre-departure Covid tests may be scrapped to make travel simpler.
The likes of aerospace engineer Rolls Royce and British Airways parent company IAG received a bump from reports that pre-departure Covid tests may be scrapped to make travel simpler.
Removing mandatory tests would make travel less costly for consumers and potential stimulate demand for foreign holidays.
The pound lost ground on the greenback, weakening 0.17 per cent to $1.3814.
Strong performances among travel stocks was extended to the mid-cap FTSE 250, with easyJet leading the way, up 5.12 per cent to help the index leap 0.54 per cent to 23,558.54 points.
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Winners and losers
Travel stocks lined the risers column on the blue-chip index, with IAG and Rolls Royce both soaring more than 3.50 per cent.
Hospitality stocks also received a filip from the rumours of Covid tests being ditched, with Compass Group and Whitbread both rising 2.38 per cent and 2.24 per cent to 3,266p and 1,481p respectively.
Industrials tempered gains on the FTSE index. Miners Rio Tinto, Anglo American and Antofagasta dipped more than 1.10 per cent. BHP Group and Fresnillo fed into the industrials’ losses, both in the red during opening trading.
Around the world
Asian markets lurched into the red in overnight trading, with all three of the region’s main benchmarks down sharply on fears the economic recovery among the area’s largest nation’s is slowing.
China’s CSI 300 slid 1.22 per cent to 4,807.70 points, while Hong Kong’s Hang Seng plunged 1.46 per cent to 24,667.85 points. Japan’s Nikkei extended the region’s losses, down 0.62 per cent to 30,323.34 points.
Weak Industrial production and retail sales data indicated China role of steampowering Asia’s recovery is receding, according Jeffrey Halley, senior market analyst for Asia Pacific at Oanda.
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“The Industrial Production data was likely affected by rising input costs, semi-conductor shortages and logistical disruptions, the same issues afflicting the rest of the world.
“With regards to the Retail Sales data though, one can’t divorce slump in consumer confidence from the ongoing shared prosperity multi-sector government crackdowns, where job losses are an inevitability.”