Europe open: Shares edge ahead on travel restart hopes
European stocks edged higher at the opening on Tuesday, with travel stocks pushing ahead on hopes that regional travel could resume to approved countries this year.
The pan-European Stoxx was up 0.22% in early deals with the UK’s FTSE 100 outperforming, rising 0.72%.
Britain was expected to publish a so-called “green list” of countries that people can go to on holidays, sending shares in TUI, budget airline easyJet, Trainline, British Airways owner IAG and Aeroports de Paris higher.
“The catalyst for this latest move higher is chatter about a commodities supercycle with oil companies and miners higher as well as continuing optimism about the reopening of the global economy – with travel, retail and hospitality stocks also in demand,” said AJ Bell investment director Russ Mould.
“Inflation continues to be a fly in the ointment of the recovery – with signs of supply chain issues popping up in the latest readings of factory activity in the US and Germany and the price of lumber trading at a record high in Chicago.
In other equity news, Dassault Aviation led the Stoxx with a 7% rise after Egypt’s defence ministry said it had signed a contract with France to buy 30 Rafale fighter jets.