The FTSE 100 rallied on Tuesday on market optimism global economies would soon reopen as governments outlined plans for the lifting of restrictions over the weekend.
The FTSE 100 was up 1.38% at 6070 in midmorning trade on Tuesday after a long bank holiday weekend that saw global stocks rally whilst the FTSE 100 was closed on Monday.
“Once again the markets embraced an optimistic outlook regarding the current coronavirus situation, setting aside fears over the long-term economic impact of the pandemic AND the ever-growing tensions between the US and China to instead focus on another round of global easing measures,” said Connor Campbell, analyst at Spreadex.
There was also hope the UK economy would soon bounce back as the Prime Minister announced plans for shops to reopen in the coming weeks.
“The FTSE led the charge on Tuesday, returning from the Bank Holiday weekend feeling refreshed and rejuvenated. That’s because Boris Johnson gave the public more details on how the UK is going to stagger out of lockdown.”
Oil majors BP and Shell added a significant number of points to London’s leading index after a rally in oil helped lift commodity shares.
BP and Shell were up 1.8% and 2.2% respectively whilst Brent oil rose through $36.
However, the top FTSE 100 risers were IAG and easyJet, both up around 20%. The jump in airlines shares came after an industry wide update on the resumption of flights and announcements from some European countries they would be scrapping quarantine measures.
Spain released a statement over the weekend that included plans to remove the current mandatory quarantine 1st July which would open the doors for holiday makers to take flights to one of the UK’s most popular holiday destinations.
Cruise operator Carnival was also stronger, up 12%.
Fresnillo was the FTSE 100’s biggest faller as demand for safe haven precious metals was sapped by a risk-on sentiment in markets.
