FTSE hits three month high

The highest closure on Wall Street since March, a further reopening of borders across Europe and the first positive reading in Chinese manufacturing are helping to lift London stocks this morning.

New Highs 1

The highest closure on Wall Street since March, a further reopening of borders across Europe and the first positive reading in Chinese manufacturing are helping to lift London stocks this morning.

Centrica speculators are going for one last roll of the dice, pushing the share price up 7% just as the company is about to be relegated from FTSE 100 in the latest quarterly reshuffle. EasyJet, Carnival and Meggitt will also be shuffled out of the index on 22 June to be replaced by Avast cyber security firm, Kingfisher, Homeserve and Ladbrokes GVC.

Optimistically, the shares in airline companies are also trading higher. But although most European countries are loosening the restrictions on foreign travel some, like Greece, said they wouldn’t allow UK travelers because of high numbers of corona deaths in the UK. Germany is also due to open its borders but plans to bring in individual recommendations for different countries. The UK itself is also in the process of scuppering summer holiday travel as the government is due to unveil the details of its two-week quarantine plans on foreign arrivals.

Overall, the market is shifting into a less risk averse mood and in the process gold miners are being left behind. Polymetal International, Fresnillo and Antofagasta have slipped to the bottom of the table as gold prices have dipped overnight.

Brent crude has rallied to the highest level since early March, nudging the $40 level in a speculative dash ahead of next week’s OPEC meeting. Investors are betting on the cartel extending and possibly deepening the cuts but the the trade could easily end as a buy-the-rumour-sell-the-news exercise.

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