Market report

Market enjoys Jubilee jump | Wizz Air grows network


5pm: Markets shrug off PM vote

The Queen’s comic interlude with Paddington Bear was a big hit with TV viewers

The FTSE 100 index enjoyed a Jubilee jump as traders returned after the long weekend of celebrations for the Queen in a positive mood. Blue chips closed up 75.27 points, or 1%, at 7,608.22.

Oil majors and miners led the gainers amid optimism over easing Covid rules in China, as traders bet on the PM holding on to his job

Brent oil was quoted at $119.27 a barrel at the London equities close 

Shares in BP rose 2.1% and Shell closed up 1.4%. Miners Rio Tinto, Glencore and Anglo American gained 3.4%, 3.54 and 3% respectively.

Danni Hewson, AJ Bell financial analyst said: “Whether investors are considering the odds are rather against the current PM being ushered out of Westminster or they’re sanguine that whatever the outcome, fiscal policy is unlikely to move much, London markets seem to have relegated the political shenanigans to water cooler gossip.

“Rejuvenated by a four-day bank holiday weekend and bolstered by growth noises coming out of China after the end of an eight-week lockdown in Shanghai, a little risk appetite seems to be creeping back in.

“All that optimism could be popped like a balloon if US inflation figures come in higher than hoped for and any shift to the narrative that the numbers have peaked. Realistically no one expects we’ve seen the back of the volatility that’s dominated proceedings for much of the year.”

8.30am: Blue chips higher

The FTSE 100 enjoyed a Jubilee jump, trading 78.5 points higher at 7,611.43.

7am: Wizz Air

Wizz Air Holdings, the fastest-growing European airline, said it carried 4,117,271 passengers in May, representing a 390% increase compared to May 2021, at a load factor of 84.2%.

The company continued to grow its network and improve its customer offering, and said its CO2 emissions in grams per passenger/km were 20.2% lower compared to same month last year.

The company announced last Friday that it will cancel all Wizz UK flying from its Doncaster Sheffield Airport base from 10 June. Pilots and cabin crew have been offered the opportunity to fly out of another base in the UK.

Global markets

Traders were expected to return to their desks in an upbeat mood following the long Platinum Jubilee weekend.

Spread betting firms were forecasting a 50 points opening surge for the FTSE 100 which closed on Wednesday at 7,532.

Asian markets set the tone with Hong Kong and Japan higher, helped by China announcing a further easing of curbs in Beijing over the weekend and officials in Washington considering a selective removal of tariffs on Chinese imports to help the fight against inflation.

Crude oil prices continue to rise, hitting $120.35 a barrel (0522 GMT), compared to Friday’s $119.72, as markets adjust to the EU ban on Russia amid growing global demand.

Despite OPEC+ announcing a combined production increase of 648,000 barrels per day in July, the majority of members are unable to increase capacity, which analysts say means OPEC+ will not be able to fill the shortfall left by Europe tightening sanctions against Russia.

At home, the possibility of a no-confidence vote on Prime Minister Boris Johnson will be closely watched by investors while inflation numbers are published later this week.

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