- FTSE 100 closing price of 7,081.29, +0.84%
- UK house prices rise at fastest pace in 7 years
- GBP hits 3-year high, pulls back
- Crude rallies, OPEC+ continues on production path
- Cryptocurrencies steady
By Samuel Indyk
Investing.com – The FTSE 100 finished the first day of June in positive territory, supported by a rally in materials and energy stocks as commodities prices continued to trade with gains.
and rallied after the OPEC+ group recommended maintaining their plan to gradually increase oil output in July, despite fears of an increase in supply if Iran and world powers reinstate the nuclear deal.
jumped above $71 for the first time since early March as the demand picture continues to favour a tighter oil market. With “driving season” now underway in the US, early indications suggest that demand for gasoline is going to continue to pick up over the summer as the economy reopens amid continuing vaccinations. A similar picture is seen in the EU where the vaccination programmes are slowly starting to catch up with the US and UK.
The rally in oil prices supported companies such as BP (LON:) and Royal Dutch Shell (LON:) who rose near the top of the while Tullow Oil (LON:) was the best performing stock in the .
Of note, the FTSE reshuffle will take place based on the market capitalisation of companies at the close of business today. ITV (LON:) is likely to get a promotion to the FTSE 100, while newly listed companies Darktrace (LON:), Moonpig Group (LON:), and Trustpilot (LON:) should all be getting included in the FTSE 250.
Homebuilders were also strong, with the likes of Redrow (LON:) and Barratt Developments (LON:) posting strong gains after Nationwide said grew by an annual 10.9% in May, the fastest rate in .
Elsewhere on the data front, IHS Markit’s rose to 65.6 in May. The figure was revised slightly lower from the flash estimate but was still the in 1992.
hit its highest level since April 2018 but later edged back despite a softer . Some were suggesting a bout of profit taking for the pullback while others were highlighting the spread of the Covid variant first discovered in India, named the ‘Delta variant’ by the World Health Organization.
Some scientists have been vocal about potentially delaying the next stage of the reopening on 21st June, when UK Prime Minister Johnson hopes that an end to social distancing measures can be introduced. According to Politico, one UK official puts the chances of June 21st going ahead as planned as “50-50”.
Cryptocurrencies were relatively steady after some volatility during the long weekend in the UK and US which saw drop as low as $33,400 before bouncing to around $36,000. Other major cryptocurrencies showed similar price action with trading around $2,500 and around $1.01.
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