London open: FTSE rallies as travel stocks shine

(Sharecast News) - London equity markets rose in early trade on Tuesday, with travel stocks pacing the advance as investors welcomed an easing of lockdown measures and travel restrictions.
At 0845 BST, the FTSE 100 was up 2% at 6,113.74, with sentiment boosted by news that non-essential shops will be allowed to reopen from 15 June. Prime Minister Boris Johnson also said on Monday that outdoor markets and car showrooms will be able to reopen from 1 June.

CMC Markets analyst Michael Hewson said: "The line of least resistance continues to be for markets to drive higher this morning as UK and US investors return from their long weekends. Talk of vaccine trials and further easing of economic lockdowns is fuelling confidence that the worst is behind us, and that the way forward is for a continued improvement in economic activity.

"Travel and airlines stocks are doing well on the back of yesterday's reports that German national carrier Lufthansa is on the brink of a €9bn bailout from the German government, with British Airways owner IAG leading the way, along with decent gains for easyjet and Ryanair.

"The deal still needs to get the nod from the European Commission, who might impose a number of conditions in return for its approval, including the surrender of key flight slots."

In equity markets, travel stocks were also boosted by a report from news agency DPA suggesting that the German government plans to end a travel warning for tourist trips to 31 European countries from 15 June. News that Spain will lift its 14-day quarantine for overseas arrivals from 1 July also underpinned gains.

TUI surged, while InterContinental Hotels, cruise operator Carnival and Premier Inn owner Whitbread were all high risers.

EasyJet was also in focus after chief financial officer Andrew Findlay resigned just days after the airline's founder Stelios Haji-Ioannnou failed to remove him and three other leading board members. The budget airline said Findlay was expected to work his year's notice while the board looks for a replacement.

Elsewhere, Aston Martin rallied as it confirmed the departure of chief executive Andy Palmer to be replaced by AMG chief Tobias Moers in August.

Market Movers

FTSE 100 (UKX) 6,113.74 2.01%
FTSE 250 (MCX) 16,818.58 2.56%
techMARK (TASX) 3,771.64 1.32%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 221.00p 15.83%
InterContinental Hotels Group (IHG) 4,022.00p 10.28%
easyJet (EZJ) 612.20p 9.83%
Carnival (CCL) 1,064.50p 8.45%
Rolls-Royce Holdings (RR.) 303.80p 8.27%
Whitbread (WTB) 2,404.00p 7.71%
Melrose Industries (MRO) 100.00p 7.32%
British Land Company (BLND) 369.10p 6.06%
Land Securities Group (LAND) 576.20p 5.88%
Barclays (BARC) 109.10p 5.78%

FTSE 100 - Fallers

Just Eat Takeaway.Com N.V. (CDI) (JET) 8,748.00p -1.33%
AstraZeneca (AZN) 8,954.00p -0.47%
Imperial Brands (IMB) 1,506.00p -0.40%
Polymetal International (POLY) 1,698.00p -0.12%
Antofagasta (ANTO) 822.40p 0.02%
London Stock Exchange Group (LSE) 8,442.00p 0.12%
Johnson Matthey (JMAT) 2,032.00p 0.15%
Hikma Pharmaceuticals (HIK) 2,566.00p 0.16%
Rio Tinto (RIO) 4,273.50p 0.26%
Tesco (TSCO) 228.10p 0.35%

FTSE 250 - Risers

TUI AG Reg Shs (DI) (TUI) 420.00p 39.17%
Aston Martin Lagonda Global Holdings (AML) 43.64p 23.07%
Cineworld Group (CINE) 70.00p 19.86%
Marston's (MARS) 78.15p 18.41%
Wizz Air Holdings (WIZZ) 3,392.00p 13.14%
Mitchells & Butlers (MAB) 172.00p 12.86%
Hammerson (HMSO) 69.06p 9.24%
Ninety One (N91) 223.40p 9.08%
SSP Group (SSPG) 268.00p 8.85%
Helios Towers (HTWS) 148.60p 8.63%

FTSE 250 - Fallers

Hochschild Mining (HOC) 207.00p -1.43%
HICL Infrastructure (HICL) 162.80p -1.33%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,748.00p -1.33%
Clarkson (CKN) 2,315.00p -1.07%
BlackRock World Mining Trust (BRWM) 344.50p -1.01%
Bakkavor Group (BAKK) 72.80p -0.95%
Balfour Beatty (BBY) 241.60p -0.74%
Ascential (ASCL) 273.00p -0.66%
TBC Bank Group (TBCG) 726.00p -0.55%
Dechra Pharmaceuticals (DPH) 2,826.00p -0.49%