The FTSE 100 has begun the week brightly and continues to trade above the big psychological level of 7000, not far from its all-time high. The pound is little changed on the day, gaining slightly against the US dollar and Euro.
Sentiment rises on strong European data
This morning saw a plethora of data releases from the continent which were positive overall and indicate good health for the Eurozone economy. Both manufacturing and services surveys from Germany and the Eurozone as a whole came in above market expectations and signalled sizeable expansions. The releases were particularly warmly received in German stocks with the Dax rallying higher to trade at its highest level of 2016. This positive news comes not long after last week’s ECB meeting when President Draghi looked to dispel fears over a reigning in of the current stimulus measures in a move that sunk the single currency and provided a boon to stocks. Despite relations between the UK and mainland Europe remaining strained as the Brexit situation wrangles on, a strong Europe is still obviously seen as a positive in London and today’s data has boosted UK stocks.
Airport expansions to elevate Airline stocks?
EasyJet is the best performing stock on the UK blue chip index so far today with International Consolidated Airlines not far behind, as Transport secretary Chris Gayling is expected to signal a fresh desire to expand the UK’s regional airports this week. Tomorrow a special cabinet committee will meet to decide whether Gatwick or Heathrow should be expanded to give the southeast more airport capacity, with murmurings suggesting the latter will be given the green light. Elsewhere mining stocks are also trading in positive territory with Glencore (LON:GLEN), BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) all firmly higher. At the other end of the index resides Hikma Pharmaceutical as the firm’s recent woes continue, with the stock falling further towards the yearly low seen in January.