EasyJet drives FTSE 100 recovery ahead of US employment report

Guy Bentley
Follow Guy
EasyJet has helped the FTSE 100 to bounce back (Source: Getty)

The FTSE 100 is up 53 points, ending four days of losses, as EasyJet moved to the top of the pack after hiking its profit forecast for the year.

The budget airline expects a full-year pre-tax profit of between £575m and £580m. Previous estimates were for a pre-tax profit of between £545m and £570m. EasyJet reaped the benefit of a strike at Air France.

United Utilities enjoyed a rise after issuing a response to Ofwat's draft determination. Yesterday the FTSE 100 dropped to its lowest level since last December.

The blue-chip index closed 111.1 points down, at 6,446.3. Markets were unimpressed with the European Central Bank (ECB) after failing to reveal the full size of its asset purchase programme. Furthermore, Mario Draghi gave no hint of a massive QE programme.

Few believed that the measures announced yesterday will fundamentally alter the situation in the Eurozone. The situation was not helped by recent slew of poor manufacturing surveys.

“Investors had hoped for more than they got. The fact is that the Eurozone is in a liquidity trap in which additional monetary policy measures just aren’t working,” said Jeremy Batstone-Carr, head of private client research at Charles Stanley.

The €1 trillion programme included purchases of Greek and Cypriot junk bonds. However, investors have shown a note of confidence ahead of US employment numbers.

Related articles