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London markets boosted by financials rally

Mike Bane, chair of HICL, said the “solid operating result” reinforced his belief that the company’s shares have been oversold.
Mike Bane, chair of HICL, said the “solid operating result” reinforced his belief that the company’s shares have been oversold.

London markets soared yesterday to a two-year high driven by a rally among travel stocks after the UK government signalled it intends to scrap remaining Covid-19 rules soon.

The capital’s premier FTSE 100 index rose 1.01 per cent to 7,643.42 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, propelled 1.82 per cent to 22,184.01 points.

Prime Minister Boris Johnson said remaining domestic Covid-19 restrictions, including the requirement to self-isolate if an individual catches the virus, may be scrapped by the end of this month.

The government also suggested there could be an imminent update on changes to rules on international travel, lifting sentiment toward airlines and hotel groups.

Airlines were the big winners in the City yesterday, with British Airways parent IAG coming second on the FTSE 100’s top risers’ table, climbing 4.67 per cent.

FTSE 250 listed short haul airlines easyJet and Wizz Air took off 3.91 per cent and 4.79 per cent respectively.

Tui also closed nearly 10 per cent higher, while Premier Inn owner Whitbread added 3.1 per cent.

An ongoing rally in commodity prices continues to boost industrial stocks listed on the FTSE 100.

Oil giant BP finished 2.83 per cent higher, while Chilean miner Antofagasta advanced 3.86 per cent.

Retailers also propped up the FTSE 100. DIY store B&Q’s owner Kingfisher climbed over three per cent.

The pound was broadly flat against the dollar.