FTSE 100 closes higher as trading optimism continues
The FTSE 100 closed in the green as global stocks enjoyed a bullish run amid on the back of continued optimism in relation to the progress of Covid-19 drugs.
The London markets were calm ahead of a week of economic news, with traders hopeful that it will reveal the very start of a V-shaped recovery in the UK.
London’s top flight closed 80.78 points higher at 6,176.19p at the end of trading on Monday.
Connor Campbell, financial analyst at Spreadex, said: “The UK index was relatively untested, things start to get really busy for the FTSE from Tuesday onwards.”
On Tuesday morning, the ONS is expected to report a return to monthly GDP growth for May in the first of a series of major economic announcements.
Traders will also be hoping for a steadying of inflation figures on Wednesday, while unemployment figures on Thursday will highlight the deepening concerns over the impact of the crisis on jobs.
Mr Campbell added: “If not quite at their initial highs, the markets nevertheless remained strong all session, including, inexplicably, the Dow Jones.”
Across the Atlantic, the Dow nudged higher as Americans continued to put their faith in big pharmaceutical firms, after Gilead heralded progress with its Remnesivir drug, saying it reduces the risk of death in severe Covid-19 cases.
The major European markets were particularly steady as the virus appeared to remain under control in continental Europe.
The German Dax increased by 1.32%, while the French Cac moved 1.73% higher.
Meanwhile, sterling moved lower after intensified Brexit talks restarted with the EU at the end of last week.
The value of the pound slid 0.06% versus the US dollar at 1.261 and was down 0.61% against the euro at 1.109.
In company news, shares in Quiz closed higher after it turned its fortunes around in the afternoon session, having seen its value tumble early on after it became the latest retailer embroiled in accusations about the poor treatment of workers in Leicester.
The brand said it was “extremely concerned” by a report in the Times over the weekend that its clothes are being made in a factory where prospective staff are being paid as little as £3 an hour. Nevertheless, shares nudged 0.02p higher to 6.77p.
Boohoo tumbled even lower after it continued to feel the impact of allegations from last week that it had workers in a Leicester factory making clothes for Boohoo were being paid as little as £3.50 an hour.
Shares fell by 49.5p to 230p as investors swallowed Friday’s news that major investor Standard Life Aberdeen sold almost £80 million of its stock in the retailer.
G4S saw shares jump after the business revealed that the first six months of the year had gone a lot better than experts predicted.
It closed 11.05p higher at 130.5p.
The price of oil as edged higher amid talk that Opec is considering rowing back on their proposed production cuts.
The price of a barrel of Brent crude oil increased by 0.84 to 43.24 US dollars.
The biggest risers on the FTSE 100 were Fresnillo, up 52.8p at 992.8p, Scottish Mortgage Investment Trust, up 48p at 959p, Johnson Matthey, up 93p at 2,207p, and Avast, up 22.5p at 578.5p.
The biggest fallers of the day were Taylor Wimpey, down 1.3p at 143.7p, Melrose, down 0.9p at 117.35p, Informa, down 3.3p at 437p, and RSA, down 2.3p at 417.6p.