UK sectors hardest hit by lockdown post big rally as big tech stocks tumble on Wall Street

UK travel and hospitality companies set to benefit from easing Covid restrictions have rallied on the London Stock Exchange after Boris Johnson presented the government’s roadmap to end the lockdown in England

Amid growing hope for a quick economic recovery from the worst recession in more than 300 years, shares of companies hardest hit by the lockdown, including airlines, travel agencies and train station retail, food and beverage operators have made the biggest gains in growing hopes of a quick return to relative normality

Shares of airlines and travel agencies rose after a surge in holiday bookings Monday night after Johnson announced a possible return to international travel from May 17, subject to review government

EasyJet said flight bookings from the UK jumped 337% and package holiday bookings jumped 630% from a week earlier, with Malaga, Alicante and Palma in Spain , Faro in Portugal and the Greek island of Crete among the main destinations August holidays were the most popular, followed by July and September

The low cost airline ended the day 45%, while holiday travel company TUI was up 35% International Airlines Group, owner of British Airways, rose almost 2%

Cineworld has gained 95% on hopes theaters will reopen in mid-May, as reported by Johnson, while SSP Group has climbed 17% as investors bet on resumption of sales at its stores Upper Crust and Caffè Ritazza once vacationers and commuters return to airports and train stations Rank Group, bingo specialist, increased by 6%

In view of the resumption of outdoor consumption from mid-April, followed by indoor hospitality from May 17, shares of the C&C Group cider house jumped 9% Whitbread, owner of Premier Inn, moved closer to undoing stock market losses accumulated since the start of the pandemic, while pub chain JD Wetherspoon also hit levels last seen a year ago

Real estate companies with large offices and retail were also in demand British Land, the company behind malls such as Meadowhall and Drake Circus and offices such as Broadgate in the City was the biggest rise in the FTSE 100, up more than 5% Land Securities, which has offices in London and the Bluewater shopping center, rose more than 4%

Richard Morawetz, vice chairman of rating agency Moody’s, said the gradual easing of restrictions – assuming there is no reversal – would increase revenues for companies that are more dependent on the free movement, such as tourism, retail and leisure activities

“This will be reinforced by the roll-out of the immunization program, which will boost consumer confidence and consumption in the sectors most affected by the lockdowns,” he said.

The winners of the lockdown stood out on an otherwise mixed day for financial markets; the FTSE 100 rose 02% to 6,625, while the more domestically focused FTSE 250 increased 04% to 21,057

The pound rose 03% against the dollar to trade above $ 1.41 for the first time in nearly three years, fueled by optimism over the UK’s vaccination schedule and hopes of ‘a faster economic recovery

Meanwhile, on Wall Street, shares of big tech companies have slipped amid fears that valuations have risen too far after a stellar performance over the past year, and as the prospect of a higher inflation looms as global economy recovers from Covid-19

Tesla was among the biggest cutters, dropping 11% at one point, but ending the day with just over 2%. His stocks were still dragged down by a drop in the value of bitcoin in automaker’s $ 1 due to 5 billion cryptocurrency bets announced earlier this month Bitcoin fell about 20% in less than two days, dropping below $ 50,000 from a record high of 58,000 USD Sunday

Testifying in Congress, Jerome Powell, Chairman of the U.S. Federal Reserve, issued a cautious note on the outlook for the world’s largest economy and said central bank support was still needed to exit the pandemic This pledge of support has thrilled investors and the markets have recovered some of their earlier losses

Sean Darby, global equities strategist at US Bank Jefferies, said the UK government’s plans to reopen were “much more progress” than most other economies the bank analyzed

“As the pressure on the healthcare system eases, there may be room for more rapid easing of social restrictions, allowing some of the worst sectors of the UK economy and market to bounce back”

/ p>

Lockdown roadmap UK

World news – GB – Shares of UK travel and hospitality companies rise in response to roadmap

Source: https://www.theguardian.com/business/2021/feb/23/shares-in-uk-travel-and-hospitality-buoyant-in-response-to-roadmap