London stocks had slipped below the waterline at the close on Tuesday, having started the day on a rosier note following strong manufacturing and mortgage data.
the FTSE 100 ended the session down 0.67% to 6,923.17, and the FTSE 250 was off 0.74% at 22,330.04.
The British pound was in a mixed state, last trading 0.14% weaker against the dollar at $ 1.3891, while strengthening 0.19% against the euro at € 1.1553.
Markets weakened earlier in the afternoon, following Germany’s decline DAX as well as US Treasury bond yields.
“Lower Treasury yields provide the basis for more caution in reflation trading, cooling expectations of a major pro-cyclical outperformance as vaccines take effect,” said IG Senior Market Analyst Joshua Mahony.
“Interestingly, the 2% collapse in the DAX didn’t really highlight any particular emphasis of pressure on selling, manufacturing, banking, tech and technology companies. real estate all losing ground.
“From a German perspective, we have seen a surge in vaccinations lately, bringing increased hope of catching up after stuttering efforts by the European Commission.
Mahony noted that the European Commission has laid the groundwork for a recovery in tourism activity, raising expectations that the region could receive a tourism boost over the summer.
“Airlines have received a welcome boost as Europe moves closer to resuming non-essential travel, with the UK government to clarify exactly which countries fall into each category of the traffic light system.
“Nonetheless, resuming flights comes with risks, with more contagious and evasive variants from around the world likely to increase in numbers once travel is restarted.”
On the data front, a survey showed Britain’s manufacturing sector surged in April, even as supply chain disruptions continued to cast a shadow.
the IHS Markit / CIPS the purchasing managers index rose to 60.9 in April from 58.9 in March.
This was slightly above both the consensus and flash estimate, at 60.7, and the highest reading since a record 61.0 in July 1994.
Production and new orders improved in April as foreclosure restrictions eased and demand picked up, boosting employment.
However, supply chain issues continued to hamper progress in some areas.
“The sector has remained plagued by delays in the supply chain and shortages of inputs, which has contributed to rising purchasing costs and record inflation in selling prices,” IHS Noted.
In the stock markets, precious metal miners Fresnillo and Polymetal increased by 3.38% and 3.11% respectively.
Travel stocks were mixed, having exploded earlier in the session after the EU said on Monday it would allow holidaymakers from countries with low coronavirus infection rates, such as the UK, as well as tourists fully vaccinated from June.
Owner of British Airways and Iberia AGI was up 0.42%, with the added boost of an upgrade to ‘overweight’ from ‘neutral’ to JPMorgan Cazenove.
The bank said while 2021 is set to remain very difficult, the outlook from 2022 “looks bright as global air travel begins to normalize.”
“We anticipate some turbulence on this route, but see IAG as an attractive long-term investment”, JP Morgan mentionned.
Low budget airline easyJet closed up 0.34%, while the owner of Premier Whitbread was down 1.08% and travel agency TUI slipped 1.37%.
Owner of the shopping center British land rose 1.04% and Land Securities rose 1.44%, amid a brighter outlook after the reopening of non-core stores.
Elsewhere, at Mike Ashley’s Frasers Group gained 5.72% after announcing the launch of a share buyback of up to £ 60million to reduce its share capital.
In contrast, online supermarket Ocado lost 4.43%, online electric retailer World AO slipped 6.91%, and Just eat take out fell 3%.
All three stocks had benefited greatly from Covid-19 restrictions and lockdowns, as demand for home-delivered products increased.
Home lender Provident Financial fell 2.78% as it said a review of its consumer credit division was nearing completion, with the result due to be announced along with its annual results next week.
FTSE 100 (UKX) 6,923.17 -0.67%
FTSE 250 (MCX) 22,330.04 -0.74%
techMARK (TASX) 4,301.86 -1.34%
FTSE 100 – Risers
Fresnillo (FRES) 848.80p 3.38%
Polymetal International (POLY) 1,542.00p 3.11%
BP (BP.) 309.75p 2.36%
Imperial Marks (IMB) 1,537.00p 1.96%
BT Group (BT.A) 167.20p 1.82%
Next (NXT) 7,934.00p 1.69%
Land Titles Group (LAND) 730.40p 1.44%
British American Tobacco (BATS) 2,715.00p 1.23%
Royal Dutch Shell ‘A’ (RDSA) 1381.60p 1.22%
British Land Company (BLND) 523.80p 1.04%
FTSE 100 – Fallers
Intermediate capital group (ICP) 2,079.00p -5.03%
Ocado Group (OCDO) 2,004,00p -4.43%
Pearson (PSON) 792.80p -4.41%
Group 3i (III) 1 223.50p -4.37%
Aveva Group (AVV) 3,330.00p -4.31%
Scottish Mortgage Inv Trust (SMT) 1210.50p -3.85%
Flutter Entertainment (CDI) (FLTR) 14,325.00p -3.47%
Weir Group (WEIR) 1 852.50p -3.36%
Taylor Wimpey (TW.) 173.65p -3.31%
Hikma Pharmaceuticals (HIK) 2360.00p -3.28%
FTSE 250 – Risers
Frasers Group (FRAS) 541.50p 5.72%
Vectura Group (VEC) 117.00p 3.91%
Workspace Group (WKP) 850.00p 3.66%
Convatec Group (CTEC) 225.40p 3.30%
Cairn Energy (CNE) 175.30p 3.24%
Syncona Limited NPV (SYNC) 244.00p 2.95%
UDG Healthcare Public Limited Company (CDI) (UDG) 882.50p 2.74%
ITV (ITV) 124.30p 2.73%
Great Portland Estates (GPOR) 711.50p 2.67%
Centamin (DI) (CEY) 110.25p 2.65%
FTSE 250 – Fallers
Network International Holdings (NETW) 390.50p -7.00%
World AO (AO.) 258.80p -6.91%
Baillie Gifford US Growth Trust (United States) 310.50p -6.05%
Edinburgh Worldwide Inv Trust (EWI) 338.00p -5.59%
Elementis (ELM) 141.40p -5.48%
Micro Focus International (MCRO) 490.00p -5.41%
Investec (INVP) 277.90p -4.53%
Allianz Technology Trust (ATT) 286.00p -4.51%
Carnival (CCL) 1608.60p -4.50%
Just a group (JUST) 104.20p -4.49%