FTSE 100 Lifted by Airlines Despite Oil Dip


Monday, April 29: Markets in London were marginally higher at the open and extended gains through the day, following Asian markets which closed in the green due to a rebound in Chinese industrial profits. US equities closed in the green on Friday, with the S&P 500 at record highs as US GDP came in ahead of estimates at +3.2% year-on-year, which helped to stoke investors’ risk appetites.

The FTSE 100(+0.17%) was lifted by travel groups TUI(+2.65%), IAG(+1.98%) and Easyjet(+1.17%) as British holidaymakers sought out destinations outside the EU as the Brexit ordeal dragged on, engineers & financials also provided support; miners, utility stocks and Ocado found themselves in the red for independent reasons. Brent Oil fell $3 lower over the weekend to $72/bbl as US President Trump continued to pressure OPEC into cutting prices, with a knock on effect evident in the share prices of oil majors on the FTSE 100.

The Euro Zone economic sentiment metric fell for a 10th consecutive month and to its lowest level in over two years whilst a third win in four years for Prime Minister Pedro Sanchez and his Socialist government ensured European equity moves were flat. Managers in industry & the retail sector became more bearish across the continent, whilst the news that Pedro Sanchez’s Spanish Socialist Workers’ Party would likely have to unite with regional political parties in a hung parliament did little to induce the buying of European equities(Euro Stoxx 50(-0.02%) & Spain’s IBEX-35(+0.00%)).

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