London’s FTSE 100 hit its highest level in a month, buoyant by 0.4 per cent, as the relaxing of Covid restrictions in China boosts confidence across international markets.
The capital’s premier FTSE 100 index climbed to 7615.82, having closed at 7,585.46 on Friday.
British Airways owner International Airlines Group led the charge with a three per cent gain while retailer JD Sports Fashion saw shares boosted after a leadership change last week.
Renewed confidence in consumer-focused stock, following a government support package last week, has also seen shares rise across consumer brands including Next and Primark owner Associated British Foods.
Scottish Mortgage Investment Trust also saw shares boosted, with optimism that its China-based Tencent and Alibaba would reap the rewards of relaxed Covid rules.
The mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, jumped 1 per cent or 201.59 points to 20,574.11.
This leap was driven by a 25 per cent lift for Countryside Partnerships, following confirmation of takeover interest from In-Cap.
Shanghai authorities are to cancel several of the criteria for businesses to resume work this week, in a relaxing of a city-wide lockdown that has spanned two months.
“The FTSE 100 is on the front foot as worries about global growth have eased and hopes have lifted that China’s worst Covid woes may be over,” Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, said.
“There was a ripple of relief across European markets after authorities in Shanghai announced a lifting of restrictions from Wednesday, with more production now expected to begin across the manufacturing and tech hub. Stimulus measures to kick start Shanghai’s economy are also helping to lift sentiment, with hopes that they could help revive corporate and consumer spending.”
Asian stocks tracked Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.
The Memorial Day holiday in the United States made only a limited impression on month-end demand and MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 1.9 per cent to a three-week high.
Japan’s Nikkei .N225 added 2.2 per cent and South Korea .KS11 rose 1.2 per cent.
Nasdaq futures NQc1 added another 1.1 per cent, after gaining 6.8 per cent last week, while S&P 500 futures firmed 0.6 per cent ESc1, having rallied 6.6 per cent last week in their best week so far this year.