- European markets solid
- Airlines and travel stocks performing well
- UK retail misses August expectations
European markets on a firmer footing on Friday. FTSE 100 made a bold move at the open to recapture the week’s intraday high at 7,093 struck on Monday before pulling back, still trades up roughly half of one per cent in early trade. This comes after a lacklustre session on Wall Street – Nasdaq up a touch, S&P 500 down a touch after the textbook bounce off the 50-day SMA on Thursday. Cyclicals were higher along with real estate, while basic materials and energy declined as oil pulled back from its highs and precious and some other metals took a hit. Stock markets on either side of the pond now just in the green for the week, Nasdaq just a tad lagging at the moment. Better session for the Hang Seng but still down 5 per cent for the week.
Airlines and associated travel stocks are among the top performers this morning on hopes for the relaxation of international travel rules. Ministers are looking to scrap the need for the double-jabbed returning to the UK to take PCR tests, whilst the traffic light system would be scrapped. This would remove a huge blockage for the industry, though what hoops you need to go through once you get to your destination is another matter... ‘your papers please’...’I just wanted a sandwich!’. Anyway, shares in the likes of TUI and IAG rose around 4 per cent. SSP – which does the sandwiches – up 3 per cent. WH Smith +2 per cent. Informa – which does conferences – also benefitted as it ought to make business travel less of a headache for those HR teams. Not all travel shares were up – EasyJet fell another 1 per cent. HSBC rallied on two upgrades. IHG also got a boost as Berenberg upgraded to buy. Wickes rose 5 per cent after Deutsche Bank raised the stock to buy.