FTSE blooms as lockdown rules loosen
Markets crept higher yesterday, reversing the falls a day earlier, despite the best attempts of the White House to spook Asian markets overnight. Comments made by the US Government’s economic adviser Peter Navarro in an interview saw him say the Uschina trade deal was over.
President Donald Trump took to Twitter to say it is “fully intact” and Navarro claimed his comments had been taken out of context.
With hopes that the deal will remain on the table, the FTSE 100 closed the day up 75.5 points or 1.21 per cent at 6,320.12.
European indices fared similarly, with the German Dax up 2.13 per cent – even as one of its biggest constituents, Wirecard, saw its former chief executive arrested for alleged fraud over account irregularities at the firm.
David Madden, financial analyst at CMC Markets UK, said: “The confirmation that trading relations were good acted as a boost to sentiment, and it helped distract traders from the health crisis.”
The UK also enjoyed a slight boost as new data showed a marked improvement in the private sector compared with May, with the manufacturing industry showing a small amount of growth again.
In company news, investor reaction was muted to the heavily trailed announcement that the UK government would be reducing physical distancing guidelines from two metres to one in England.
Pubs and restaurants can reopen with measures in place from 4 July, but spas, gyms and bowling alleys, among other venues, must remain closed. Shares in The Gym Group shed 5.6p to 162.6p although Hollywood Bowl closed up 2.5p at 161.5p. Despite shops reopening, Braehead owner Intu Properties warned that its shopping centres across the UK may have to close as it put administrators at KPMG on standby, as it struggles with huge debts. Shares were down 0.21p to 4.4p.
Irn-bru-maker AG Barr in a statement issued after the markets closed flagged the end of its sale and distribution contract with Rockstar Inc. The tie-up will end in August but it is anticipated that the group will continue to make, sell and distribute Rockstar energy drinks up to 1 November. Shares in the Cumbernauld-based group had closed up 0.8 per cent at 481p.