FTSE 100 LIVE: Travel stocks SOAR after holiday boost – Spain to REOPEN tourism in July

FTSE 100 LIVE: Travel stocks SOAR after holiday boost – Spain to REOPEN tourism in July

Shares in Tui leapt by more than 52.4 percent at the close of trading on Tuesday as Spain signalled hope for holidaymakers following months of global shutdowns to fight COVID-19. British Airways owner IAG rocketed by 22.5 percent and easyJet rose by 19 percent. While Ryanair increased by nearly 12 percent after it said it would ramp up flights by 40 percent of its normal schedule from July 1. 

It comes after the Spanish government revealed on Monday that its requirement for overseas visitors to go into quarantine for 14 days will be lifted from July 1.

This followed announcements by other popular tourist destinations that coronavirus restrictions will be eased in the coming weeks.

Meanwhile, Asian shares slipped on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

US President Donald Trump said late on Tuesday he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong, but gave no further details. Hong Kong shares led declines among major regional indexes, with Hang Seng falling 0.46 percent, though it kept a bit of distance from a two-month low touched on Monday. MSCI’s ex-Japan Asia-Pacific index lost 0.12 percent, with mainland Chinese shares down a similar amount. Japan’s Nikkei was almost flat.

Worsening relations between the world’s two biggest economies could further hobble global business activity, which is already under intense pressure due to the coronavirus pandemic.

E-Mini futures for the S&P 500 rose 0.4 percent, reclaiming the 3,000 chart level. The index had cleared 3,000 points in Wall Street overnight before pulling back, as some traders returned to the New York Stock Exchange floor for the first time in two months.

“The S&P 500 looked to be set to close above 3,000 until the late headline that the United States was considering a range of sanctions on Chinese officials and businesses should China go ahead with its legislation regarding Hong Kong,” analysts at the National Australia Bank said in a note.

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7.05am update: Dollar edges higher 

The dollar edged higher on Wednesday as worries about the US response to China’s proposed security law and renewed protests in Hong Kong supported safe-haven demand for the greenback.

The dollar edged up to $1.2320 against the pound on Wednesday, pulling away from its lowest level in two weeks.

The dollar rose to $1.0958 per euro, also pulling away from a one-week low.

The dollar remained locked in a narrow range at 107.53 yen , but the yen rose against the euro and the antipodean currencies on increased safe-haven demand..

5.38am update: Japan eyes fresh $1.1 trillion stimulus to combat pandemic pain

Japan will compile a fresh stimulus package worth $1.1 trillion (893.15 billion pounds) that will include a sizable amount of direct spending to cushion the economic blow from the coronavirus pandemic, a draft of the budget obtained by Reuters showed on Wednesday.

The stimulus, which will be funded partly by a second extra budget, will be on top of a $1.1 trillion package already rolled out last month, putting the total amount Japan spends to combat the virus fallout at 234 trillion yen – roughly 40 percent of Japan’s gross domestic product.

The government’s 117 trillion yen ($1.1 trillion) in fresh stimulus, to be compiled on Wednesday, will include 33 trillion yen in direct spending, the draft showed.

To fund the costs, Japan will issue an additional 31.9 trillion yen in government bonds under the second supplementary budget for the current fiscal year ending in March 2021, according to the draft.

Published at Wed, 27 May 2020 04:31:00 +0000