FTSE 100 records strongest performance since March on hopes of faster recovery from the global recession

The UK’s blue-chip index, FTSE 100, recorded its best performance on Monday since the last week of March as investors expressed confidence that the global economy will recover from COVID-19 driven recession faster than initially thought.

The commodity-heavy index posted a 4.3% gain on Monday after closing the regular session on Friday around 2% down on the weekly chart. Monday marked a significant increase in oil demand that saw its price recording a 1-month high. As a result, Royal Dutch Shell and British Petroleum were seen trading over 8% up in the stock market on Monday.

FTSE 250 index posts an intraday gain of just under 4%

The domestically focused, FTSE 250 index also celebrated on Monday with an intraday gain of just under 4%. The mid-cap index was also reported around 2.5% down on the weekly chart at the end of the trading session on Friday.

.FTNMX1770 or the mining index also registered an 8.1% increase on Monday that translates to its largest intraday gain in around 2 months. Senior markets economist, Stefan Koopman of Rabobank commented on the price action on Monday and said:

“Currently, it’s very sentiment driven because it’s all about reopening and rather than closing. It feels like investors have a fear of missing out and they just want to join this rally. That’s why it’s very broad based and led by sectors that are most strongly hit by the shutdown.”

The banking index, on the other hand, reported the smallest gain on Monday as the chief economist of the Bank of England highlighted that the central bank is considering turning to negative interest rates to boost the economy.

Other noticeable price actions on Monday

Other noticeable price actions on Monday include a 12% jump in Hochschild as the precious metals miner announced plans of resuming its operations in Peru in early June.

Ryanair Holdings’ (LON: RYA) shares (London-listed) also advanced roughly 16% on Monday as the Irish low-cost airline noted a 13% increase in annual profit after tax. The air carrier, however, slashed its traffic target for fiscal 2021.

On the downside, Intu Properties (LON: INTU) took the lead with a 4.3% decline on Monday as the mall operator warned that it might not be able to meet its debt commitments in June. The real estate investment trust company also said that it is now seeking standstill agreements with creditors to avoid default.