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FTSE 100 makes solid start on Friday as travel stocks fly

The FTSE 100 added 0.38% on Friday, rising 7,055, as economic news came in from all angles.

“Steadying Asian markets and a potential easing of UK travel restrictions provided the backdrop for some decent gains for the FTSE 100 on Friday,” says AJ Bell investment director Russ Mould.

“Navigating the UK’s traffic light system has felt more like Spaghetti Junction than a clear open road for holidaymakers and reports that the amber list could be canned entirely is manna from heaven for travel stocks which are enjoying broad-based gains.”

The hope for airlines and tour operators will be that a shift in the rules is the precursor to people jetting off for autumn and winter getaways to get the sunshine they were largely deprived off over the summer in the UK.

“People spending more on holidays could add to the pressure on retail sales as spending shifts from goods to experiences,” said Mould.

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“August’s retail numbers were hit by shortages, though the big retailers were able to flex their muscles to keep stock on the shelves.”

An exception to the otherwise downbeat shopping trends were clothes and fuel, as people are out and about more they clearly care more about their appearance and are using their cars to get from A to B.

“Elsewhere, the Chinese economy is becoming a persistent migraine for the markets amid concerns over the real estate sector as major property developer Evergrande teeters on the brink of default and with the spread of the Delta variant and state crackdown on the tech sector also undermining sentiment,” Mould said.

FTSE 100 Top Movers

IAG (3.39%), Informa (3.21%) and Entain (2.54%) are leading the way on the FTSE 100 heading into the weekend.

While it was generally a positive day for the UK index, Anglo American (-3.35%), Rio Tinto (-2.32%) and Ashtead (-1.96%), were all in the red.

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