FTSE hits three month high

The highest closure on Wall Street since March, a further reopening of borders across Europe and the first positive reading in Chinese manufacturing are helping to lift London stocks this morning.

New Highs 1

The highest closure on Wall Street since March, a further reopening of borders across Europe and the first positive reading in Chinese manufacturing are helping to lift London stocks this morning.

Centrica speculators are going for one last roll of the dice, pushing the share price up 7% just as the company is about to be relegated from FTSE 100 in the latest quarterly reshuffle. EasyJet, Carnival and Meggitt will also be shuffled out of the index on 22 June to be replaced by Avast cyber security firm, Kingfisher, Homeserve and Ladbrokes GVC.

Optimistically, the shares in airline companies are also trading higher. But although most European countries are loosening the restrictions on foreign travel some, like Greece, said they wouldn’t allow UK travelers because of high numbers of corona deaths in the UK. Germany is also due to open its borders but plans to bring in individual recommendations for different countries. The UK itself is also in the process of scuppering summer holiday travel as the government is due to unveil the details of its two-week quarantine plans on foreign arrivals.

Overall, the market is shifting into a less risk averse mood and in the process gold miners are being left behind. Polymetal International, Fresnillo and Antofagasta have slipped to the bottom of the table as gold prices have dipped overnight.

Brent crude has rallied to the highest level since early March, nudging the $40 level in a speculative dash ahead of next week’s OPEC meeting. Investors are betting on the cartel extending and possibly deepening the cuts but the the trade could easily end as a buy-the-rumour-sell-the-news exercise.

More from Indices

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.