A man wearing a protective face mask walks past the London Stock Exchange Group building in the City of London financial district. March 9, 2020. REUTERS/Toby Melville
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Jan 4 (Reuters) – UK’s FTSE 100 rose on Tuesday in the first trading session of 2022 after its best annual gain in five years following signs the Omicron coronavirus variant was less likely to derail the global economic recovery.
The blue-chip FTSE 100 (.FTSE) gained 1.3% to hit new highs since February 2020, while the domestically focussed mid-cap index (.FTMC) advanced 1.4% in a catch-up rally after a long holiday weekend.
Financials led gains, with banking (.FTNMX301010) and life insurance (.FTNMX303010) stocks adding 3.6% and 1.6%.
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“A higher rate cycle always calls for a better performance for the banks as it’s going to be helpful in their profits, especially their interest rate margins,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
The yield on two-year British government bonds hit its highest since late October after Prime Minister Boris Johnson said new measures were not needed now to fight the Omicron variant.
UK’s airline stocks soared with Wizz Air (WIZZ.L), EasyJet (EZJ.L) and British Airways-owner IAG (ICAG.L) gaining between 7.5% and 10%, after Hungary-based Wizz Air reported strong load factor data.
The FTSE 100 gained 14.3% in 2021, recording its best annual performance since 2016, helped by gains in commodity-linked and industrial stocks. read more
British retailers (.FTNMX404010) gained 1.9%, tracking global sentiment, even though footfall in shops in the days after Christmas was 24.5% lower than the same week in 2019, Springboard analysts said. read more
British manufacturing grew slightly more quickly than originally thought in December and pandemic-related supply chain problems eased a bit, taking some of the heat out of rising input prices, a survey showed on Tuesday. read more
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Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta
Our Standards: The Thomson Reuters Trust Principles.