FTSE 100 Holds Above 7,000 as Investors Regather Optimism

May 06, 2021 02:59 AM AEST | By Abhijeet

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FTSE 100 Holds Above 7,000 as Investors Regather Optimism — Image source: everything possible,Shutterstock

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Summary

FTSE 100 rallied over 1 per cent, reclaiming the psychological level of 7,000

The focus of investors has shifted to the outcome of BoE MPC due on 6 May

European shares well reflected the confidence of regional market participants

UK shares recorded a meaningful rise on Wednesday, 5 May, with the benchmark FTSE 100 rallying more than 1 per cent to reclaim the psychological level of 7,000. The index breached the level within the opening hours of trade as investors rushed in after the new car registrations in April 2021 recorded a 30-fold growth.

Continuing the earnings’ optimism supported by the macroeconomic indicators, London equities are seemingly back on the extended track of recovery ahead of Stage 3 of planned easements slated to come into effect from the third week, 17 May. The domestic investors are now looking forward to the outcome of the Bank of England’s Monetary Policy Committee (MPC) meeting due on 6 May.

According to the latest data available with the London Stock Exchange, the headline FTSE 100 marked was at an intraday high of 7,012.99, up 1.30 per cent from the previous close of 6,923.17.

FTSE 100 chart (5 May)

(Source: Refinitiv, Thomson Reuters)

The broader indicators, including the FTSE 350 and FTSE All-Share, also gained more than 1 per cent, while the mid-cap heavy index FTSE 250 hovered marginally higher after losing the momentum in the mid-morning session. A partial earnings dejection was seen within FTSE 250.

Among the major blue-chip companies, Next Plc (LON: NXT), Barratt Developments Plc (LON: BDEV), and International Consolidated Airlines Group SA (LON: IAG) are scheduled to release their respective financial results in the present week.

European shares well reflected the confidence of regional market participants, with Germany’s benchmark stock indicator DAX leading, while Swiss Market Index of Switzerland gained the least among the major markets.

Euronext Paris-controlled CAC 40 rose 1.30 per cent to 6,332.84, Italy’s FTSE MIB jumped 1.69 per cent to 24,382.67, IBEX 35 of Spain added 1.36 per cent to 8,950.10, Switzerland’s SMI gained 1.03 per cent to 11,083.41, whereas DAX of Germany surged 1.82 per cent to 15,127.19.

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