The FTSE 100 gained around 60 points at the opening to hit 7030 points, as traders returned to their desks after the holiday weekend. This is close to the pandemic highs reached last month.
Optimism about plans to reopen the economy seems to be lifting the market.
Airlines Group IAG, which owns British Airways, is the first increase, up 3.8%, while the holiday company TUI jumped 5.4% (to top of smaller FTSE 250 index). Low budget airline easyJet gained 3.5%.
Whitbread, which hotels in the United Kingdom (Premier Inn) and in Germany grew by 2.4%.
Yesterday the EU announced it would reopen its doors to holidaymakers from countries with low Covid infection rates, such as the UK, and anyone fully vaccinated, by early June – with the aim of restarting its tourism industry.
However, it is understood that the UK could give the green light to travel to less than 10 countries (without needing to quarantine on your return).
Commercial real estate companies British land (+ 3.5%) and Real estate securities (+ 3%) are also in the elevators, which also suggests optimism about the economic reopening.
But online grocer Ocado (-1%), group to take away Just eat (-1.4%) and software developer Had (-1.3%) are among the bears, technology stocks being out of favor this morning.
Richard Hunter, market manager at interactive investor, Explain:
“With most of the major economies in the midst of a slow progression towards normality, markets continue to seek out the beneficiaries of the recovery.
In the US, there is further evidence of “reopening” trade, with investors predicting that stocks and sectors are likely to benefit from a return to some sort of normalcy. This in turn has put some pressure on tech stocks, despite their largely bullish earnings numbers, where valuations are under increasing scrutiny as the scale of their recent pandemic success is discounted. in question as the interlocks disappear.