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FTSE 100 briefly touches 7000 after improved UK public finances, but Royal Mail - Rayyes Finance and Market News
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FTSE 100 briefly touches 7000 after improved UK public finances, but Royal Mail

  • FTSE 100 climbs 108 points
  • Next up 9% after profit upgrade
  • Roll-Royce flies higher

11.14pm: Miners on the rise

Mining shares have shrugged off recent commodity price weakness as the market continues on its merrily positive way.

The FTSE 100 is 108.86 points or 1.58% at 6989.99, having briefly edged above the 7000 level to 7002.

Joshua Mahony, senior market analyst at IG, said: “Commodity prices are under pressure in the wake of a Chinese announcement that they will auction reserves of copper, aluminium, and zinc in a bid to quell price pressures.

“The rise in Chinese PPI highlights how input costs are driving up inflation, and bulls will hope that this alleviates some of the underlying reasons behind the recent rise in headline CPI.

“Recent months have been dominated by the Chinese efforts to calm the price of key commodities, and today’s announcement represents a intensification of those efforts.

“Nonetheless, with market in risk-on mode, there is a clear willingness to overlook short-term volatility in commodity prices to instead focus on the prospect of economic outperformance in the second half of 2021.”  

So among the miners () has added 3.23% while () is up 2.81% and () is 2.3% better.

9.59am: Company results provide support as market continues to climb

Positive company results and a revival in shares likely to benefit from the reopening of the economy are helping to keep the market’s momentum going.

The FTSE 100 is now up 108.55 points or 1.58% at 6989.68.

Russ Mould, investment director at AJ Bell, said: “Yesterday’s market rebound was welcome, but also raised questions as to whether it was a dead cat bounce. The fact markets have sustained positive momentum for a second day in a row is more encouraging.

“Helping to focus investors’ minds on stock opportunities and divert attention away from general worries about the economy and inflation is a step-up in companies reporting their latest earnings.

“There was also a sense that investors were regaining their appetite for higher risk stocks, with notable gains among airlines, transport operators and leisure companies.

“The FTSE 100 advanced…with retail and leisure the standout sectors helping to drive the index. Providing support were pharmaceutical and consumer goods stocks.”

Apart from Next, other risers included catering group Compass PLC (), up 5.49%, Premier Inns owner (), 4.93% better, and Primark parent (), ahead by 3.93%.

Even on a good day there are usually some fallers. At the moment these include Royal Mail PLC (), down 1.51% after it said parcel deliveries slowed sharply in its latest quarter as the online boom sparked by the pandemic eased, though letter volumes continued to rise.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ‘’With consumers no longer trapped in their homes with little option than to make purchases online, it was inevitable that the number of parcels sent through  Royal Mail would slow.

“The 13% fall in parcel volumes compared to the first quarter of 2020 is a disappointment… But we’re not fully reverting to all our old shopping habits and the structural shift to e-commerce is going to keep posties busy with trolley loads of business.”

9.04am: Sunny mood continues

The market’s positivity continues, with the FTSE 100 now within sight of the 7000 level again.

The leading index is currently up 96.56 points or 1.4% to 6977.69, its high for the day so far.

Meanwhile the FTS 250 is also on good form, up 1.54% to 22,459.87.

() has moved even higher after its positive trading update, climbing 9.47% to 8094p.

Hard hit airlines are climbing as investors decide they were oversold on continuing travel restrictions. So British Airways owner International Consolidated Airlines PLC () is up 5.17%.

Aero engine maker Rolls-Royce PLC () was boosted on Tuesday by positive comments from Citigroup, and is now up another 5.65%.


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