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London open: FTSE kicks off new year in style as travel stocks surge
London stocks kicked off the new year in style on Tuesday, with travel shares pacing the gains as investors welcomed signs that Omicron is less severe than previous Covid variants.
At 0840 GMT, the FTSE 100 was up 1.1% at 7,464.16, tracking a positive session on Wall Street, which saw the Dow and the S&P hit record highs.
Richard Hunter, head of markets at Interactive Investor, said: “In the first trading day of the year, the FTSE100 took its cue from Wall Street with a broad mark-up of stocks. Having finished 2021 ahead by 14.3%, the premier index may also benefit further from the continuing strength of the US dollar, whereby translated earnings become more valuable for its largely overseas-facing constituents.
“Meanwhile, the imminent reporting season will add further colour to the impact of both the variant and inflationary pressures on earnings, although the early signs are that the consequences may be less detrimental than in previous cases of lockdowns and restrictions. In the meantime, the premier index remains well placed on valuation grounds to attract further international buying interest.”
In equity markets, travel shares were the standout gainers, with BA and Iberia owner IAG the top riser on the FTSE 100, closely followed by engine maker Rolls-Royce. Premier Inn owner Whitbread, InterContinental Hotels, Carnival, easyJet, Wizz, Tui and SSP were all sharply higher.
Wizz Air was also in focus after it said December capacity soared by almost 200% year on year, reflecting eased Covid-19 restrictions.
Top 10 FTSE 100 Risers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
International Consolidated Airlines Group S.a. | +10.18% | +14.50 | 156.98 |
| 2 |  |
Easyjet Plc | +8.02% | +44.60 | 600.60 |
| 3 |  |
Tui Ag | +7.17% | +16.60 | 248.00 |
| 4 |  |
Carnival Plc | +6.92% | +95.80 | 1,479.40 |
| 5 |  |
Marks And Spencer Group Plc | +4.49% | +10.40 | 241.80 |
| 6 |  |
Bp Plc | +4.27% | +14.10 | 344.60 |
| 7 |  |
Informa Plc | +3.91% | +20.20 | 536.80 |
| 8 |  |
Lloyds Banking Group Plc | +3.86% | +1.85 | 49.65 |
| 9 |  |
Hsbc Holdings Plc | +3.83% | +17.20 | 465.85 |
| 10 |  |
Royal Dutch Shell Plc | +3.81% | +61.80 | 1,684.20 |
Top 10 FTSE 100 Fallers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Fresnillo Plc | -3.61% | -32.20 | 860.60 |
| 2 |  |
Croda International Plc | -2.55% | -258.00 | 9,862.00 |
| 3 |  |
Rentokil Initial Plc | -2.33% | -13.60 | 570.40 |
| 4 |  |
Ocado Group Plc | -2.18% | -36.50 | 1,641.50 |
| 5 |  |
Astrazeneca Plc | -1.87% | -162.00 | 8,516.00 |
| 6 |  |
Segro Plc | -1.29% | -18.50 | 1,418.00 |
| 7 |  |
Sage Group Plc | -1.22% | -10.40 | 842.20 |
| 8 |  |
Admiral Group Plc | -1.20% | -38.00 | 3,119.00 |
| 9 |  |
Relx Plc | -1.08% | -26.00 | 2,376.00 |
| 10 |  |
Glaxosmithkline Plc | -0.81% | -13.00 | 1,593.60 |
Europe open: Shares hit records as travel stocks take off
Travel stocks dominated record European share action at the opening on Tuesday as investors punted on hopes that further curbs may not be needed to deal with the Omicron Covid variant.
The pan-European Stoxx 600 index rose 0.53% in early deals, and hit fresh records along the way in the wake of the US S&P 500 and Dow Jones indices closing at all-time highs overnight. All major regional bourses were higher.
Sentiment was boosted after the UK’s vaccine minister said Britons hospitalised with Covid-19 in were broadly showing less severe symptoms than before.
In France, Finance Minister Bruno Le Maire said although a spike in Omicron cases was disrupting some sectors, there was no risk of it “paralysing” the economy, and stuck to a forecast of 4% growth for France’s GDP in 2022.
“Despite continually rising cases of Omicron, there is a growing belief that the variant is less deadly if more transmissible, particularly when coming up against the wall of triple-jabbed individuals,” said Interactive Investor head of markets Richard Hunter.
In equity news airlines Ryanair, British Airways and Iberia-owner IAG and Wizz Air all made large gains. Cruise line operator Carnival was up, along with holiday giant TUI.
Wizz also reported soaring passenger numbers for November.
Tuesday newspaper round-up: Apple, UK house sales, Evergrande, Blackberry
Apple became the first US company to be valued at over $3tn on Monday as the tech company continued its phenomenal share price growth, tripling in value in under four years. A pandemic-era surge in tech stocks has driven the major US tech companies to new highs, pulling US stock markets with them. Apple became the world’s first trillion dollar company in August 2018, passed $2tn in 2020 and hit its new high as trading began after the holidays and its shares passed $182.80 a piece before dipping lower to end the day valued at over $2.9tn. – Guardian
The number of UK first-time homebuyers has hit its highest level since 2002, according to a new estimate. Despite the uncertainty generated by the pandemic and strong house price growth, the number of first-time buyer transactions in 2021 is estimated to be 408,300, according to Yorkshire Building Society. That would be a 35% increase on the 303,000 transactions in 2020, and more than double the levels in the years following the global financial crisis of 2007-08. – Guardian
Shares in Evergrande were suspended on Monday amid increasing uncertainty about the stability of the debt-ridden Chinese property behemoth. Evergrande said that trading in Hong Kong had been halted ahead of the release of “inside information”, but declined to give further details. It came after the company, which is struggling under the weight of $300bn (£222bn) of loans, missed a debt payment last week. Chinese media reports over the weekend said Evergrande had been ordered to demolish an illegally-built development in Hainan, a southern island region in China. – Telegraph
They were once the height of mobile technology, with thousands of emails and messages typed out by suited executives and teenagers alike on their reassuring physical keyboards. But the world’s last few BlackBerry users will find their phones begin to stop working on Tuesday as support for the devices’ software is finally switched off. The Canadian technology company behind BlackBerry, known at the peak of its powers more than a decade ago as Research In Motion, said devices running its operating system will “no longer reliably function” as of Jan 4. – Telegraph
A quarter of working parents in Scotland said they were likely to take on work or avoid taking time off at Christmas because of a rise in living costs. A survey for the charity Action for Children in Scotland found that almost 74 per cent were concerned about rising energy bills and prices in shops. Of these 25 per cent said that they would work extra hours or not take time off and nearly 90 per cent were prepared to miss out on family gatherings. – The Times
