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

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.