Pound’s gains stifle Footsie’s momentum
The FTSE 100 jumped as traders were buoyed by the Prime Minister’s plans to loosen current lockdown restrictions.
Recently hard-hit sectors, such as travel, leisure and retail, saw firms bounce higher amid hopes that they could be nearing a recovery.
Stocks leapt at the start of trading but stalled later in the session after the climbing value of sterling pressed down on Ukbased multinational firms.
London’s top flight closed 74.48 points higher at 6,067.76.
Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been another decent day for European stock markets… Meanwhile, the FTSE 100 underperformed, probably as a result of the strength of the pound, on the back of a move to a two-week high against the US dollar.”
Sterling had another strong day as Boris Johnson’s press briefing on Monday went down well with investors.
The value of the pound rose 1.27 per cent versus the US dollar at $1.234, and was up 0.51 per cent against the euro at €1.124.
Across the Atlantic, the Dow Jones was on the front foot, taking cues from the strong performance of markets in Europe.
Travel firms led the risers amid hopes that more flights could take off in Europe in the coming months, with Tui jumping by more than 50 per cent, while rivals IAG and Easyjet also made significant gains.
Meanwhile, retailers were also particularly buoyant after Johnson said non-essential retail stores will be able to open to customers from 15 June.
The news resulted in strong jumps for WH Smith, up 159.5p at 1,122p, troubled retail landlord Hammerson, up 11.14p at 74.36p, and JD Sports, up 57.6p at 622.4p.
Aston Martin closed 9.9p higher at 45.36p after chief executive Andy Palmer confirmed he would leave after leading a troubled period for the car manufacturer.
Baker Greggs saw shares rise after saying it plans to increase its store openings by midjune. It moved 53p higher to 1,765p.
Elsewhere, bar chain Revolution climbed after it agreed a £16.5 million loan through the government’s coronavirus lending programme to help larger firms. It saw shares rise 3.9p to 21.9p.