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(Alliance News) - Stocks in London opened higher on Monday amid hopes for an economic recovery, with housebuilders in the green after a positive update from Barratt Developments.
The FTSE 100 index was up 137.05 points, or 2.2%, at 6,294.35. The mid-cap FTSE 250 index was up 273.19 points, or 1.6%, at 17,575.22. The AIM All-Share index was flat at 894.02.
The Cboe UK 100 index was up 2.1% at 625.00. The Cboe 250 was up 1.2% at 14,911.10, and the Cboe Small Companies was up 0.5% at 9,281.59.
In mainland Europe, the CAC 40 in Paris was up 2.1%, while the DAX 30 in Frankfurt was up 1.9%.
The easing of lockdowns is providing hope the global economy will bounce back from an expected recession this year, with Britain's pubs reopening at the weekend and tourist attractions around Europe either now open or planning to.
In addition, better-than-forecast data on US jobs creation and factory activity have also provided a boost to confidence, as are hopes for a vaccine, which analysts say is key to kickstarting any major recovery.
The Japanese Nikkei 225 index closed up 1.8%. In China, the Shanghai Composite ended up 7.8%, while the Hang Seng index in Hong Kong is up 2.8%.
On the London Stock Exchange, Barratt Developments was the best blue-chip performer, up 5.8% after the housebuilder said that since the UK government's restrictions on housing market activity were lifted in mid-May, there has been a welcome recovery in activity across both the industry and its business.
Barratt said following the reopening of its sales centres, the company has seen an increase in lead volumes, which are running at levels in excess of those achieved in the same period in 2019. In the six weeks since reopening it achieved a sales rate of 0.63, marginally lower from 0.69 net private reservations per active outlet per average week, with no "discernible change in pricing levels".
The housebuilder said its forward sales position is strong, with total forward sales as at June 30, at a value of GBP3.2 billion, up from GBP2.6 billion at the same time last year, equating to 14,326 homes, up from 11,419 homes.
Peers Persimmon, Taylor Wimpey and Berkeley were up 5.7%, 5.6% and 3.5% respectively.
Sentiment in the sector was also lifted following a Times newspaper report that UK Chancellor of the Exchequer Rishi Sunak has drawn up plans to exempt most homebuyers from paying any stamp duty to kick-start the country's economic recovery.
Aviva was up 3.5% after the insurer said it has appointed Amanda Blanc as its new chief executive officer with immediate effect.
Maurice Tulloch stepped down as CEO and retired from his position due to family health reasons. Tulloch had been CEO for just over a year.
Blanc has been a non-executive director at Aviva since January and will now step down from all her non-executive commitments, Aviva added.
Lloyds Banking Group was up 2.5%. The high street bank said Chief Executive Antonio Horta-Osorio has informed the board of his intention to step down from the role in 2021, after having delivered three strategic plans and completing a 10-year stint in the role next year.
The lender also has appointed Robin Budenberg as its new chair, replacing Norman Blackwell. Budenberg will join the company's board on October 1 and will assume the role in early 2021, when Blackwell steps down.
At the other end of the large-cap index, DS Smith was the only stock in the red, down 2.0% after Jefferies downgraded the paper and packaging company to Hold from Buy.
The pound was quoted at USD1.2505 early Monday, up from USD1.2465 at the London equities close Friday.
The UK's separation talks with the EU resume Monday with few signs of compromise on a new trade agreement and time running out to avoid a messy split. London will host EU negotiator Michel Barnier after a round of face-to-face talks ended a day early last week in Brussels because of deep divides in the sides' approach.
Barnier said after ending the negotiations last Thursday that "serious divergences remain". His UK counterpart David Frost said there were "significant differences" that meant the sides were still searching for basic "principles underlying an agreement".
The euro was quoted at USD1.1294, up from USD1.1242, after positive economic data from Germany.
Germany factory orders jumped in May, following sharp drops caused by coronavirus-induced lockdowns, data from Destatis showed.
According to the numbers, manufacturing orders for Europe's largest economy grew 10% from April. Annually, however, orders plunged 29%. FXStreet-compiled consensus predicted a 15% month-on-month rise. On an annual basis, orders were expected to fall 28%.
Against the yen, the dollar was quoted at JPY107.70, up from JPY107.52.
Brent oil was quoted at USD42.32 a barrel Monday morning, lower from USD42.66 late Friday. Gold was quoted at USD1,777.60 an ounce, marginally higher from USD1,775.00.
Financial markets in the US will reopen on Monday after being closed on Friday for a holiday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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