Travel and Transport-related names were helping to limit losses on the top-flight index on Wednesday with the likes of Compass Group, Rolls Royce and InterContinental Hotels Group all putting in a small bounce at the end of the quarter and the half.
Concerns around the potential economic impact of the Covid-19 Delta variant had weighed on their shares over the last few sessions.
Yet according to economists at Berenberg, the hit to growth was unlikely to be “significant” thanks to the rapid of vaccinations.
Instead, Berenberg – which stood by its forecasts for UK GDP growth in 2021 and 2022 – expected growth to decouple further from the trend of infections.
“Thanks to rapid vaccination progress, we consider it unlikely that medical systems in the UK or on the continent will come under such pronounced strains again that new serious restrictions to economic activity will be needed again to keep the medical risks under control,” he said.
Investors concerns were nevertheless perhaps reflected in losses in shares of Prudential, Intermediate Capital Group and the London Stock Exchange, all of whose shares were trading near the bottom of the pile.
On a related note, analysts at Citi pointed out how recent gains on the S&P 500 had mainly been the result of short covering – which had stretched futures shorts for the S&P 500 to a three-year low.
“In contrast, in Europe, futures positioning continues to thin out, suggesting a reluctance from futures investors to commit in either direction,” Citi said.
Market Movers
FTSE 100 (UKX) 7,060.59 -0.38%
FTSE 250 (MCX) 22,458.78 -0.37%
techMARK (TASX) 4,453.90 -0.10%
FTSE 100 – Risers
Compass Group (CPG) 1,520.00p 1.77%
Sainsbury (J) (SBRY) 271.80p 1.12%
Rolls-Royce Holdings (RR.) 99.55p 0.98%
Croda International (CRDA) 7,410.00p 0.93%
Whitbread (WTB) 3,141.00p 0.74%
Melrose Industries (MRO) 155.55p 0.71%
Smith & Nephew (SN.) 1,569.50p 0.71%
InterContinental Hotels Group (IHG) 4,817.00p 0.69%
British Land Company (BLND) 496.80p 0.69%
Vodafone Group (VOD) 121.88p 0.64%
FTSE 100 – Fallers
Prudential (PRU) 1,376.50p -3.40%
Intermediate Capital Group (ICP) 2,129.00p -2.74%
Ocado Group (OCDO) 2,013.00p -2.38%
Evraz (EVR) 598.00p -2.32%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,717.00p -2.30%
London Stock Exchange Group (LSEG) 8,004.00p -2.01%
Avast (AVST) 491.20p -1.76%
Rightmove (RMV) 648.80p -1.70%
Taylor Wimpey (TW.) 159.55p -1.66%
Berkeley Group Holdings (The) (BKG) 4,608.00p -1.60%
FTSE 250 – Risers
Indivior (INDV) 155.20p 6.81%
Dixons Carphone (DC.) 131.20p 6.75%
Morrison (Wm) Supermarkets (MRW) 247.50p 4.87%
Trainline (TRN) 293.40p 2.95%
QinetiQ Group (QQ.) 343.80p 2.75%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 482.50p 2.33%
Wood Group (John) (WG.) 219.10p 1.91%
Ultra Electronics Holdings (ULE) 2,270.00p 1.79%
C&C Group (CDI) (CCR) 244.40p 1.75%
Mediclinic International (MDC) 299.60p 1.70%
FTSE 250 – Fallers
Cineworld Group (CINE) 76.20p -6.20%
TP Icap Group (TCAP) 196.52p -4.60%
Chrysalis Investments Limited NPV (CHRY) 250.00p -4.58%
Crest Nicholson Holdings (CRST) 423.20p -3.51%
Renishaw (RSW) 4,924.00p -3.36%
Hiscox Limited (DI) (HSX) 835.00p -3.15%
Cairn Energy (CNE) 146.90p -3.10%
International Public Partnerships Ltd. (INPP) 167.20p -2.79%
Tyman (TYMN) 454.00p -2.78%
Pagegroup (PAGE) 561.00p -2.43%
