Pre weekend bounce

Pre-weekend bounce

The reopening of European borders and a push from top European tourist summer destinations for Britain to abandon its two-week quarantine for travelers is lifting the airline and travel sectors. British Airways parent IAG is trading up an impressive 11.6% and easyJet is following suit with a 9% rally. Cruise operator Carnival is also trading higher as investors are pinning their hopes that Britons will travel abroad this summer after all.

The market rally shows that Britain still has one foot in the pandemic – shops and bars remain closed while concerts, festivals and cinemas are not even on the agenda - while the other foot is out and marching ahead as the country is trying to negotiate its way back to a fully functioning economy. Retail and property shares are already pricing in the reopening of stores next week and an expected return of buyers to the housing market. Yet grim data keeps dousing some of the optimism.

German manufacturing orders saw the largest drop on record in April, falling 25.8%, British consumer confidence fell in May to the lowest level since the global financial crisis and UK house prices fell for a third straight month, although the decline was slightly smaller than in April.

The ECB’s decision Thursday to provide a €600bn stimulus injection to European economies will go some way to help European businesses and industries pick up quickly once all the restrictions are fully lifted and help them mend the damage from the pandemic.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.