Yahoo Finance FTSE nudges higher but lags behind rival markets amid travel slump
The FTSE 100 edged into positive territory at the close as another tough day for travel and leisure firms saw London’s top index underperform against its rival global markets.
Europe’s key markets had spent much of the day in the red but rebounded after a steady opening in the US helped to shore up waning confidence somewhat.
The FTSE 100 closed 3.54 points, or 0.05%, higher at 7,125.42 on Monday.
Joshua Mahoney, senior market analyst at IG, said: “A slow start to the week has seen European and US markets enjoy marginal gains in a bid to follow Friday’s impressive surge for stocks.
“The rebound in yields since Friday has dented confidence for growth names, with the Nasdaq trading in the red today as a continuation of Friday’s pop in yields.
“UK travel names have been hit hard today despite the confirmation that the UK will continue to respect the July 19 date to fully unlock the economy.”
Elsewhere in Europe, the Dax swung to a new record high as traders steadied themselves after a weak opening.
The German Dax increased by 0.65% and the French Cac moved 0.46% higher.
Across the Atlantic, the Dow Jones also dipped on the opening bell but proceeded to gain ground and continue its recent bumper spell.
Meanwhile, sterling lagged behind a strong dollar which seemed in a bullish mood ahead of Tuesday’s CPI inflation announcement.
The pound was down 0.1% versus the US dollar at 1.388 and was flat against the euro at 1.170.
Travel firms IAG, EasyJet and Jet2 all slumped amid concerns over rising Delta variant rates, while Cineworld was among leisure firms to slump after Sajid Javid said mask-wearing will be recommended in crowded indoor settings.
In company news, insurer Admiral made gains after it said it is set to reveal higher-than-expected profits for the past six months after a boost from its motor injury claims business.
It told shareholders that pre-tax profits for the first half of 2021 will be between £450 million and £500 million, having posted £286 million for the same period last year.
Shares lifted by 123p to 3,244p as a result
FTSE 250-listed firm Trustpilot climbed on Monday after it said it was “confident” in its outlook and strategy after a positive first half.
The consumer reviews firm said first half revenues climbed by 29% to 62 million US dollars (£44.7 million), buoying expectation for the year.
Trustpilot closed 12.8p higher at 347.4p at the end of the session.
Troubled fashion firm Quiz jumped by 1.74p to 11.5p after it hailed a strong recovery in sales over the past three months after reopening its stores.
The price of oil dipped as it came under pressure from concerns that the rise in cases of the data variant could impact upon further global unlocking plans and stall international travel further.
Brent crude decreased by 0.56% to 75.14 dollars per barrel.
The biggest risers on the FTSE 100 were Admiral Group, up 123p at 3,244p, B&M European Value, up 12p at 557p, Natwest Group, up 4.4p at 206.8p, and Ocado, up 30p at 1,939p.
The biggest fallers of the day were Rolls-Royce, down 5.26p at 95.74p, IAG, down 7.84p at 177p, Whitbread, down 98p at 3,038p, and Associated British Food, down 63p at 2,122p.
