Stock markets: FTSE 100 touches an almost 3-week high
10:30, 7 December 2021
UK stocks touched an almost 3-week high on Tuesday, with the FTSE 100 Index pulled up by miners and strong earnings, as the end of the fourth quarter draws closer. Market sentiments were also more buoyant as investor anxieties about Omicron abated somewhat.
European stocks reflected the same positive sentiment, with the EURO STOXX 50 Index advancing, as copper prices increased further, following the relaxing of monetary policy in China, thus renewing investor hopes about commodity demand rebounding in the near future.
What’s interesting today: Plumbing parts company Ferguson stock increased approximately 4.4% on the back of robust earnings. Ashtead Group, the international equipment rental company, also increased approximately 2.7% after increasing dividends and being optimistic about full-year results.
Why are stocks up today?
Strong earnings outlooks raised investor confidence: Robust earnings from a number of companies such as Ferguson raised investor confidence about markets recovering sooner than expected.
What is your sentiment on UK100?
- What this means: With travel and leisure stocks recovering from the initial shock following Omicron’s discovery, and companies such as Ashtead Group being much more positive about the rest of the fourth quarter, investor sentiment is gradually improving as global markets bounce back. Today saw the FTSE 100 Index climb back up to pre-Omicron levels, with hopes that this gain will be extended over the coming days. Buoyant earnings so far also bolstered investor confidence in the resilience of the markets and provided reassurance regarding fourth-quarter performance.
Stock markets: key highlights
- The FTSE 100 Index inched up 0.90% to 7297.6 points
- The EURO STOXX 50 Index also climbed up 1.77% to 4210.5 points
- Germany’s DAX Index rose 1.42% to 15598.6 points
- France’s CAC 40 Index followed suit and increased 1.52% to 6969.8 points
- The leading sectors were transportation and communications, whereas retail and technology services lagged behind
- US S&P 500 futures increased 0/96% to $4634.5.
- The Cboe Volatility Index, or VIX, a measure of expected fluctuations in US stocks, dropped to 27.18 as investor anxieties reduced somewhat
- The US Dollar Index dropped to $96.34
- The US 10-Year Bond Yield Index increased to 1.450%.
Top stock gainers: UK and Europe
- The best performing companies in the UK were International Consolidated Airlines Group, BT Group and Whitbread
- International Consolidated Airlines Group recently announced that although still below pre-pandemic levels, its capacity would reach approximately 60% in the last quarter of the year
- BT Group has reportedly been in talks with Discovery in regards to a joint venture
- Whitbread shares were up following Peel Hunt’s recommendation to maintain its rating as ‘buy’
- The top stock gainers in Europe were Flutter Entertainment, SAFRAN and Ab InBev
- Flutter Entertainment shares rallied after the company was speculated to be undervalued by stockbrokers such as Peel Hunt
- SAFRAN shares increased after the company expressed an interest in purchasing Orolia from Eurazeo
- Ab InBev shares gained following the company setting its first growth and earnings targets under new leadership.
Top stock losers: UK and Europe
- The worst performing sectors in UK were Ocado Group, Darktrace and Scottish Mortgage Investment Trust
- Ocado Group’s CEO recently expressed doubts about the profitability and business models of online grocery startups
- Scottish Mortgage Investment Trust shares struggled to recover from the hit dealt by the fall in Chinese technology markets
- The top stock losers in Europe were Linde, Schneider Electric and Allianz
- Linde recently announced a deal with Optimal Group, an energy firm based in Australia
- Schneider Electric recently announced that India was the fourth international hub for the group
- Allianz announced that it has started preparations to move to a more capital-light business model.
Stocks news: what you need to know today
- Sumo Logic stock dips following earnings announcement
- GitLab stocks increase by 4% following better-than-expected revenue estimate
- Indian stocks open on an optimistic note
- India’s Tata Motors’ shares rally as vehicle prices increase.
Read more: European stock market outlook 2022: shallow dips amid ECB support
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