- FTSE 100 index posts a 1.2% increase as British retailers line up to reopen stores in June.
- The domestically focused FTSE 250 index prints an even broader 3.3% gain on Tuesday.
- Retailers index climbs 4.5% but healthcare, mining, and defensive stocks remain downbeat.
The UK’s blue-chip FTSE 100 index posted a 1.2% increase on Tuesday as Prime Minister Boris Johnson announced further easing in Coronavirus restrictions that will allow more retailers to reopen stores. The British government also said that it plans on slowly easing restrictions on tourism that fuelled a wave of celebration in travel stocks.
The blue-chip index opened at 5993.28 on Tuesday and closed the regular session on 6,069.66 after hitting 6,124.05 in the morning session. As of Tuesday, the FTSE 100 is still roughly 20% down year to date. Learn more about what is a stock index.
FTSE 250 index posts a 3.3% gain on Tuesday
The domestically focused FTSE 250 index, on the other hand, noted an even wider gain of 3.3% on Tuesday as the UK government expressed confidence in a phased reopening of thousands of department stores, high street shops, and shopping centres in June.
The mid-cap index opened at 16,398.86 on Tuesday and concluded the regular session at 16,906.36. Tuesday marked the highest closing price for the FTSE 250 index in almost three months.
Market strategist Stephen Innes of AxiCorp said on Tuesday:
“The consumer will need to do the bulk of the heavy lifting so confidence to get out of the house and start to live a normal life will be critical to this recovery.”
With a 4.5% increase, .FTNMX5370 (retailers index) registered the highest closing price on Tuesday since the first week of March. . FTNMX5750 (travel and leisure stocks), on the other hand, recovered to around a one-month high on Spain’s announcement that some foreign tourists will be allowed to visit starting from July. Germany also said on Tuesday that it will ease travel restrictions on tourists from select parts of Europe.
Healthcare, mining, and defensive stocks remain downbeat
On the contrary, however, healthcare, mining, and defensive stocks, including pharmaceuticals, were reported downbeat on Tuesday. Lastly, .FTNMX0530 (oil and gas stocks) also caught momentum on Tuesday on hopes that demand for energy will return as businesses resume activity which will result in an increase in oil prices.
Other prominent price actions on Tuesday included a massive 27% increase in Aston Martin (LON: AML) as the British luxury car manufacturer announced an end to its CEO Andy Palmer’s tenure and named CEO Tobias Moers of Mercedes-AMG as its next Chief Executive. The transition, the company added, is expected later this year in August.