ADVFN Morning London Market Report: Tuesday 4 May 2021

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London open: FTSE back above 7,000 as travel stocks rally


London equity markets rose in early trade on Tuesday, with the FTSE 100 back above 7,000 as travel stocks paced the advance.

At 0905 BST, the FTSE 100 was up 0.6% at 7,011.71 as traders returned to their desks after the Bank Holiday weekend.

Neil Wilson, chief market analyst at, said: “The reopening in the US and UK continues apace. More states are opening up bars, restaurants and other hospitality venues at full capacity, whilst Britons are set to resume international travel this month and get back in the pub too.

“Europe is catching up fast on vaccinating its population and will be at a similar level by the summer. The vaccines are working. Stimulus is also supporting spending as US personal incomes soared by 21% last month.”

Travel stocks were the best performers after the EU said on Monday that it will allow holidaymakers from countries with low coronavirus infections, such as the UK, and fully vaccinated tourists from June.

Wilson said: “Talks on the plans begin today. Whilst progress is slow, there is hope that by the summer holidays travel will be substantially more possible.”

Russ Mould, investment director at AJ Bell, said sentiment was also being underpinned by “chatter about a commodities supercycle”.

British Airways and Iberia owner IAG rallied, with the added boost of an upgrade to ‘overweight’ from ‘neutral’ at JPMorgan. The bank said that while 2021 is expected to remain very challenging, the prospects for 2022 onwards “look promising as global air travel starts to normalise”.

“We anticipate turbulence on this journey but consider IAG an attractive long-term investment,” JPM said.

Premier Inn owner Whitbread, budget airline easyJet and travel company Tui were also high risers.

Shopping centre owners British Land and Land Securities advanced amid brightening prospects, after the reopening of non-essential stores.

Elsewhere, Mike Ashley’s Frasers Group gained after saying it was starting a share buyback of up to £60m to reduce its share capital.

WH Smith was in the black following reports it is considering moving its new gadget chain InMotion to the airport stores left behind by Dixons Carphone.

On the downside, online electricals retailer AO World and Just Eat Takeaway – both of which have benefitted from Covid restrictions and lockdowns – were on the back foot.

Doorstep lender Provident Financial slumped as it that a review of its consumer credit division is nearing completion and the outcome will be announced with its full-year results next week.


Top 10 FTSE 100 Risers

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# Name Change Pct Change Cur Price
1 Fresnillo Plc +4.81% +39.60 863.20
2 Tui Ag +4.41% +19.00 449.70
3 Bp Plc +3.33% +10.10 313.10
4 Easyjet Plc +3.33% +34.50 1,070.50
5 Royal Dutch Shell Plc +3.18% +43.40 1,408.40
6 Whitbread Plc +3.02% +98.00 3,342.00
7 Royal Dutch Shell Plc +3.00% +39.00 1,338.00
8 International Consolidated Airlines Group S.a. +2.96% +6.00 208.80
9 Itv Plc +2.89% +3.50 124.50
10 Land Securities Group Plc +2.72% +19.60 740.40


Top 10 FTSE 100 Fallers

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# Name Change Pct Change Cur Price
1 Ocado Group Plc -2.91% -61.00 2,036.00
2 Micro Focus International Plc -2.24% -11.60 506.40
3 Pearson Plc -2.22% -18.40 811.60
4 Hsbc Holdings Plc -1.24% -5.60 447.20
5 Hikma Pharmaceuticals Plc -1.15% -28.00 2,412.00
6 Standard Chartered Plc -1.04% -5.40 514.20
7 Rentokil Initial Plc -0.84% -4.20 496.20
8 Sage Group Plc -0.75% -4.80 633.20
9 Taylor Wimpey Plc -0.75% -1.35 178.25
10 Auto Trader Group Plc -0.67% -3.80 566.40


Europe open: Shares edge ahead on travel restart hopes

European stocks edged higher at the opening on Tuesday, with travel stocks pushing ahead on hopes that regional travel could resume to approved countries this year.

The pan-European Stoxx was up 0.22% in early deals with the UK’s FTSE 100 outperforming, rising 0.72%.

Britain was expected to publish a so-called “green list” of countries that people can go to on holidays, sending shares in TUI, budget airline easyJetTrainline, British Airways owner IAG and Aeroports de Paris higher.

“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,” said AJ Bell investment director Russ Mould.

“Inflation continues to be a fly in the ointment of the recovery – with signs of supply chain issues popping up in the latest readings of factory activity in the US and Germany and the price of lumber trading at a record high in Chicago.

In other equity news, Dassault Aviation led the Stoxx with a 7% rise after Egypt’s defence ministry said it had signed a contract with France to buy 30 Rafale fighter jets.


Tuesday newspaper round-up: Amazon, Uber, Verizon Media

Fresh questions have been raised over Amazon’s tax planning after its latest corporate filings in Luxembourg revealed that the company collected record sales income of €44bn (£38bn) in Europe last year but did not have to pay any corporation tax to the Grand Duchy. Accounts for Amazon EU Sarl, through which it sells products to hundreds of millions of households in the UK and across Europe, show that despite collecting record income, the Luxembourg unit made a €1.2bn loss and therefore paid no tax. – Guardian

The electric vehicle maker Arrival aims to start producing cars by 2023 with design help from Uber, in the latest step by the UK-headquartered startup’s ambitious plans to take on the automotive industry. The car, developed specifically for use by ride-hailing drivers, will be Arrival’s first, adding to buses that are due to be on UK roads this year, as well as urban delivery vans. – Guardian

Surrounded by pine trees in a remote patch of the RAF Spadeadam base in Cumbria, three purpose-built houses are being used to test out a vision of the future that could soon be rolled out to homes across the UK. The homes in “Hy Street” are being heated with 100pc hydrogen, the clean-burning gas that is being explored as a possible replacement for fossil fuels in the rush to decarbonise. – Telegraph

The Financial Conduct Authority is close to negotiating a settlement over the £230 million Park First investment scandal that has left 4,600 investors facing significant losses. The regulator is in detailed talks with Toby Whittaker, the Lancashire-based owner of Park First and associated companies that sold individual car parking spaces at Gatwick and Glasgow airports for up to £25,000 each. – The Times

A Wall Street private equity firm has bought Yahoo, AOL and other digital media assets from Verizon for $5 billion. Apollo Global Management will pay the telecoms group $4.25 billion in cash as part of the deal, with Verizon also retaining a 10 per cent stake in the new business. – The Times


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