Rallying travel stocks lift London markets
London’s FTSE 100 edged up today on a rally among travel stocks, helping to partly reverse yesterday’s poor performance.
The capital’s premier index gained 0.16 per cent to hit 7,027.48 points, partly evening out losses registered on a choppy day on London markets yesterday.
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 potentially stimulate demand for foreign holidays.
The pound lost ground on the greenback, weakening 0.40 per cent to $1.3781.
Strong performances among travel stocks was extended to the mid-cap FTSE 250, with easyJet leading the way, surging 7.17 per cent to help the index leap 0.85 per cent to 23,632.84 points.
Winners and losers
Travel stocks lined the risers column on the blue-chip index, with IAG and Rolls Royce both soaring more than 3.30 per cent.
Hospitality stocks also received a filip from the rumours of Covid tests being ditched, with Compass Group and Whitbread both rising 2.76 per cent and 2.70 per cent to 1,488.50p and 3,276p respectively.
Industrials tempered gains on the FTSE index. Miners Rio Tinto, Anglo American and Fresnillo plummeted more than 3.70 per cent. BHP Group and Antofagasta fed into the industrials’ losses, capping off a miserable day for share class.
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 nations 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’s role steampowering Asia’s recovery is receding, according Jeffrey Halley, senior market analyst for Asia Pacific at Oanda.
“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.”
Wall Street continued a week of volatility, with all three of its main benchmarks in the red heading into the afternoon session.