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FTSE rallies, TUI pulls back

The spread of the coronavirus seems to have slowed down in the worst affected cities in China with fewer new cases reported than before. This coupled with a strong close in the US helped lift the FTSE, notably miners and airlines.

Other major moves were mainly driven by speculative trade with NMC Health rising 3.19% following a recent approach from a US investment firm and TUI dropping 3.5% as investors took profits off the table following yesterday’s flash rally of 12%. The recently merged Just Eat also made strides, gaining 2.2%. 

Brent back above $55

OPEC+ may be within a whisker of getting Russia’s approval to cut the production further in order to help support oil prices which have been sliding since the outbreak of the coronavirus. 

A special OPEC committee recommended a cut of 600,000 bbl last week but until now Russia has been reluctant to go along with the proposal. Today Russia’s energy minister said he is studying the proposal and plans to meet with the heads of Russia’s largest oil companies. Brent crude has already bounced to $55.3 this morning and if Russia approves the cuts may rally further.  

Sterling boosted by rail link approval 

After flailing for a few days in the face of Britain’s deteriorating trade setup with Europe and the US the pound staged a comeback this morning, energized by the UK’s potential spending plans. Boris Johnson’s approval of the HS2 high speed rail link between London, Birmingham, Manchester and Leeds has given investors hope that the government is close to approving a stimulus programme that will provide support to the economy and indirectly help the pound.

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