After last week’s inflation-inspired global markets sell-off, equities are racing to claw back lost territory with gains seen across Europe and Asia on Tuesday. The FTSE 100 advanced 0.35% to 7,058, while gains in the region of 0.9% were seen across mainland Europe
“It looked like a risk-on day for UK stocks, with investors bidding up shares in energy, mining and consumer cyclicals. That would suggest new-found optimism towards global economic growth and that investors are trying to look beyond short-term issues around the Indian Covid variant,” said Russ Mould, investment director at AJ Bell.
“A lot of faith is being put in a strong vaccine rollout and therefore there is confidence that companies will enjoy strong earnings growth this year. Earnings growth is a key driver for share price growth.”
Walmart and Home Depot will report earnings later today, which could give some indication of consumer spending confidence in the US.
FTSE 100 Top Movers
IAG (3.06%), JD Sports (2.47%) and Evraz (2.4%) are the top risers on the FTSE 100 during the morning session on Tuesday.
Vodafone (-6.50%), Hargreaves and Lansdown (-1.15%) and Fresnillo (-0.88%) saw the biggest falls early on in the day.
Vodafone
Vodafone saw its revenue drop last year as its roaming and visitor numbers fell due to the pandemic. The FTSE 100 telecommunications company recorded a fall in its adjusted earnings by 1.2% to €14.4bn for the year to March, as its savings totalling €500m acted as a buffer.
This fall towards the bottom of its guidance range and was lower than the €14.5bn expected by analysts, The Times reported. Vodafone’s revenue fell by 2.6% to €43.8bn, while its net debt rose to €40.5bn, an increase of 3.6%.
UK Employment
Unemployment dropped during the first three months of 2021 despite continued lockdowns as the jobs market recovered. A number of companies are hiring more staff, while some are retaining employees ahead of an expected reopening, according to official data.
The Office for National Statistics announced that payrolls increased by 97,000 between March and April, in what was the fifth month of growth in a row. The official UK employment rate grew for the first time since the pandemic begun last year
