London close: Stocks finish higher amid hopes of lockdown easing

London stocks closed in positive territory on Monday, as investors welcomed news that several countries were set to ease their lockdowns, even if the UK was not there yet.

The FTSE 100 ended the session up 1.64% at 5,846.79, and the FTSE 250 was ahead 1.69% at 15,952.72.

Sterling was stronger against both of its major trading pairs, rising 0.39% on the dollar to $1.2415 and adding 0.45% against the euro to €1.1474.

The gains came as Prime Minister Boris Johnson returned to work after contracting Covid-19, cautioning that it was too early to lift the lockdown in the UK just yet.

Johnson said progress was being made but that the country was still at a point of "maximum risk", and could not end the near-shutdown of the economy too early.

With divisions in his cabinet about how and when to ease restrictions he said a premature relaxation would risk a disastrous "second spike" of the virus that would undo the work done so far.

He urged businesses, eager to resume trading, to be patient though he understood their frustration.

“With countries across the world - notably France, Italy, Spain, Australia and New Zealand - aiming to ease some of their lockdown measures this week or next as they try to find the ‘new normal’, the markets rebounded hard on Monday,” said Spreadex analyst Connor Campbell.

“Though we have no idea when the terms of lockdown will be altered, let alone ended, in the UK, the examples set by its global, and especially European, peers still sent the FTSE sharply higher.”

Campbell said that what happens in those countries easing restrictions should be illustrative for the UK government, and could help dictate what Johnson and his cabinet chose to do next.

“This is especially true of Italy - the first European country to go into lockdown conditions seven weeks ago, it is sure to be the most scrutinised nation when it comes to assessing what measures can be lifted, and when.”

Sentiment was also lifted after the Bank of Japan pledged to buy an unlimited amount of government bonds and increase purchases of corporate debt to deal with intensifying conditions caused by the Covid-19 emergency.

In equity markets, industrial equipment rental company Ashtead Group rose 6.1% after saying it would have free cash flow under all downside scenarios during the Covid-19 crisis despite the virus having an impact on its business.

Elsewhere, luxury brand Burberry was up 4.38%, Premier Inn owner Whitbread rose 4.98% and cruise operator Carnival added 8.62%.

All three of those stocks had been hit hard on concerns about the impact of the pandemic, and so gained ground on Monday amid the prospect of lockdown easing.

InterContinental Hotels Group rose 7.11% after saying it has secured new financing arrangements taking its total available liquidity to $2bn.

The company added that it expected first quarter global revenue per available room (revPAR) fell by 55% in March, for a first quarter fall of 25% - in line with a forecast given last month.

Housebuilder Redrow rallied 1.46% as it announced plans for a phased return to construction on 18 May.

On the downside, Aston Martin Lagonda was knocked 1.02% lower by a downgrade to ‘sell’ at Goldman Sachs, while Close Brothers was off 1.53% after a downgrade to ‘underperform’ at Jefferies.

Market Movers

FTSE 100 (UKX) 5,846.79 1.64%
FTSE 250 (MCX) 15,952.72 1.69%
techMARK (TASX) 3,538.57 1.80%

FTSE 100 - Risers

Carnival (CCL) 922.40p 8.62%
Ashtead Group (AHT) 1,985.00p 8.47%
InterContinental Hotels Group (IHG) 3,601.00p 7.11%
Compass Group (CPG) 1,339.00p 5.72%
ITV (ITV) 72.20p 5.56%
Centrica (CNA) 34.00p 5.33%
Aveva Group (AVV) 3,406.00p 5.09%
Rentokil Initial (RTO) 463.60p 5.08%
Whitbread (WTB) 2,783.00p 4.98%
Next (NXT) 4,705.00p 4.98%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 4,159.00p -3.99%
Persimmon (PSN) 2,130.00p -2.87%
Pennon Group (PNN) 1,093.00p -2.50%
JD Sports Fashion (JD.) 481.50p -2.35%
Taylor Wimpey (TW.) 148.70p -1.88%
Associated British Foods (ABF) 1,858.00p -1.62%
Fresnillo (FRES) 718.80p -1.21%
Morrison (Wm) Supermarkets (MRW) 186.20p -1.06%
Admiral Group (ADM) 2,286.00p -0.95%
Anglo American (AAL) 1,385.40p -0.89%

FTSE 250 - Risers

TUI AG Reg Shs (DI) (TUI) 314.40p 14.33%
Hyve Group (HYVE) 22.80p 14.00%
William Hill (WMH) 104.35p 12.69%
G4S (GFS) 93.66p 10.11%
Watches of Switzerland Group (WOSG) 229.00p 9.20%
Dixons Carphone (DC.) 67.00p 7.89%
Virgin Money UK (VMUK) 72.74p 7.83%
SSP Group (SSPG) 281.80p 7.15%
PureTech Health (PRTC) 260.00p 7.00%
Clarkson (CKN) 2,380.00p 6.97%

FTSE 250 - Fallers

Wood Group (John) (WG.) 157.75p -7.59%
Premier Oil (PMO) 25.17p -5.66%
Drax Group (DRX) 191.20p -5.25%
Vistry Group (VTY) 773.00p -4.92%
Energean Oil & Gas (ENOG) 620.00p -4.91%
Kainos Group (KNOS) 674.00p -2.74%
IP Group (IPO) 49.95p -2.63%
Travis Perkins (TPK) 1,020.00p -2.25%
Assura (AGR) 74.80p -2.09%
Fisher (James) & Sons (FSJ) 1,322.00p -2.07%