The FTSE 100 defied unflattering predictions pushing back past the 7,000 mark as investors’ confidence in a return to normality appears to be growing.
“Bank Holidays seem to be having a restorative effect on the FTSE 100, after coming back from Easter full of vim and vigour, today saw the index make another strong post-break advance, reclaiming the 7,000 mantle,” says AJ Bell investment director Russ Mould.
“The catalyst for this latest move higher is chatter about a commodities supercycle with oil companies and miners higher as well as continuing optimism about the reopening of the global economy – with travel, retail and hospitality stocks also in demand,” Mould added.
There was also good news for airlines, who may dare to dream of a somewhat normal summer, as the EU suggested it could open up to fully vaccinated tourists.
“Time to revive EU tourism industry and for cross-border friendships to rekindle – safely,” EU Commission President Ursula von der Leyen tweeted.
FTSE 100 Top Movers
Fresnillo (4.58%), Polymetal International (3.13%) and Whitbread (2.50%) have made the most ground early on Tuesday following the bank holiday weekend.
At the other end of the FTSE 100, Aveva Group (-3.35%), Pearson (-3.41%) and Just Eat (-2.49%), have seen the biggest falls so far.
Britain is set to announce the green list for countries that people can travel to on holiday shortly, and will have the right procedures in place to ensure travel can happen safely, said trade minister Liz Truss on Tuesday.
Hopes that Britons will be able to travel to Europe rose on Monday after the European Union recommended easing restrictions to allow in people who were fully vaccinated or from countries with a “good epidemiological situation”, boosting travel stocks on the FTSE 100. The British government said in mid-April it would announce which countries would be open for quarantine-free travel from England in early May, ahead of a plan to allow holidays again from May 17 at the earliest.