The FTSE 100 is up +1.5% this morning as reports of progress toward a US-Iran ceasefire framework send risk appetite soaring across global markets.
Yesterday’s anxiety about escalating Middle Eastern conflict has given way to broad-based relief buying, with European peers joining London’s rally.
The DAX has risen by 2.1%, the CAC 40 by 2.3%, and the Euro Stoxx 50 by 2.2%. The FTSE 250, often a better measure of domestic sentiment in the UK, is also surging, up 1.7%.
The ECB’s widely anticipated 25-basis-point rate hike, delivered yesterday as expected and lifting the deposit rate to 2.25%, has been quickly digested and is no longer the story.
FTSE 100 Top Risers: Airlines and Miners Lead the Charge
IAG (+6.38%) is the standout performer of the morning. The owner of British Airways and Iberia is surging as peace deal hopes drag oil prices sharply lower.
With jet fuel being the single largest cost for any airline, lower oil means dramatically improved margin assumptions for carriers, and investors have piled in accordingly.
Rolls-Royce (+5.25%) is the second-biggest riser. The engine maker’s fortunes are closely tied to long-haul aviation hours.
As peace calms airspace and travel demand expectations improve, Rolls-Royce is a natural beneficiary.
Antofagasta (+5.08%) is close behind. The copper miner is benefiting from a broad risk-on rotation, with base metals jumping on the improved global outlook. Copper is often treated as a bellwether for economic confidence.
Elsewhere, McBride shares have plunged, while Debenhams Group (Boohoo) has rallied so far today.
On Thursday, Hugo Boss jumped following news of a takeover bid from Frasers Group.
FTSE 100 Top Fallers: The Oil Price Sting
The flipside of falling oil prices is felt in the energy sector…
BP (-3.83%) and Shell (-2.70%) are the session’s biggest decliners, with crude’s retreat on peace deal optimism squeezing both majors.
Centrica (-1.01%) is also softer, with lower gas prices feeding through to the British Gas owner’s near-term earnings outlook.
SpaceX Goes Public
SpaceX is set to make its market debut today in one of the most highly anticipated listings in years.
The listing of Elon Musk’s rocket and satellite company is the largest ever, with the company locking in an IPO price of $135 per share.
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