London stocks kicked off the new year in style on Tuesday, with travel shares pacing the gains as investors welcomed signs that Omicron is less severe than previous Covid variants.
At 0840 GMT, the FTSE 100 was up 1.1% at 7,464.16, tracking a positive session on Wall Street, which saw the Dow and the S&P hit record highs.
Richard Hunter, head of markets at Interactive Investor, said: “In the first trading day of the year, the FTSE100 took its cue from Wall Street with a broad mark-up of stocks. Having finished 2021 ahead by 14.3%, the premier index may also benefit further from the continuing strength of the US dollar, whereby translated earnings become more valuable for its largely overseas-facing constituents.
“Meanwhile, the imminent reporting season will add further colour to the impact of both the variant and inflationary pressures on earnings, although the early signs are that the consequences may be less detrimental than in previous cases of lockdowns and restrictions. In the meantime, the premier index remains well placed on valuation grounds to attract further international buying interest.”
Jarvis Investment Management Ltd offers a wide range of stockbroking and administration services and solutions. Their parent company, Jarvis Securities plc (LON:JIM) is listed on AIM.
