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- FTSE 100 gained over 1 per cent on Tuesday
- Investors are flushed with renewed optimism
- More than 36 million people have been inoculated
- New car sales growth has been pivotal in the recovery
The benchmark FTSE 100 gained more than 1 per cent on Tuesday, 6 April, after the Easter holiday in yet another trimmed week. London equities scaled fresh multi-month highs with the FTSE 100 crossing 6,800 after the new car registrations in March 2021 soared 11.5 per cent YoY to 283,964 units.
Investors have been flushed with the renewed optimism as the United Kingdom progresses ahead with the predefined target to inoculate the people as prescribed in the priority groups. Moreover, the phased reopening of sectors and businesses that were shut earlier has also driven away from the Covid blues amidst the market participants.
The FTSE 100 extended the gains very quickly after mounting over 6,800 in the early morning deals. According to the historical data available with the London Stock Exchange, the index recorded an intraday high of 6,834.46, up 1.44 per cent from the previous close of 6,737.30.
Everybody round the corner is talking about recovery with the healthcare authorities inoculating more than 36 million people in the country. The new car sales growth has been pivotal in supporting the recovery. However, the sharp growth in car sales has been largely due to the low denominator as March 2020 witnessed a week of first national lockdown with the rising Covid cases disturbing enterprises.
Notably, the battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) witnessed a major rise with the registrations of new BEVs surging by 88.2 per cent, while PHEVs registration in March 2021 leapfrogged to 152.2 per cent.
A bunch of major macroeconomic data releases is likely to steer the markets in the present week, while investors will be keenly awaiting for the upcoming financial results by the major corporations, reflecting the operating environment of the first quarter of 2021. In the present week ahead, Markit Services PMI, Construction PMI and Halifax House Price Index for the month of March 2021 will be released.
From next week, 12 April onwards, several non-essential settings including the hairdressers, nail salons, gyms, spas, beer gardens, libraries, community centres, outdoor hospitality venues, theme parks, drive-in cinemas, zoos, drive-in theatricals are slated to reopen. However, some standard operating procedures will remain in place to check for any wrongdoings or misconducts other than the allowed activities.