InvestmentsMay 11 2020

FTSE creeps up on hopes of lockdown ease

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FTSE creeps up on hopes of lockdown ease

The UK’s blue chip index opened in the green this morning after prime minister Boris Johnson last night laid out a sketch plan of how the country will lift the lockdown.

The FTSE 100 is up nearly 1 per cent (0.98 per cent) since markets opened this morning, sitting at 5,995 points and inching towards the 6,000 points barrier.

Mr Johnson’s three-step plan to re-open the economy has affected the FTSE 250 more significantly, opening up 1.17 per cent this morning (May 11).

Last night Mr Johnson addressed the nation for an anticipated speech on how the UK would begin to lift some lockdown restrictions.

He said: “We must stay alert. We must continue to control the virus and save lives. And yet we must also recognise that this campaign against the virus has come at colossal cost to our way of life.

“We can see it all around us in the shuttered shops and abandoned businesses and darkened pubs and restaurants.”

Mr Johnson added there were millions of people who were both fearful of the disease and at the same time fearful of what a “long period of enforced inactivity” would do to their livelihoods and wellbeing.

From Wednesday (May 13), people in England will be allowed to spend more time outdoors and those who cannot work from home have been urged to return to work within social distancing rules and avoiding public transport.

Measures to open schools and leisure businesses — such as pubs and cinemas — will come in early June and early July respectively if the numbers support it.

The announcement has boosted a range of company share prices. Strong risers in the FTSE 100 this morning included BT Group, up 3.1 per cent, and science and chemicals company Johnson Matthew, up 2.9 per cent.

InterContinental Hotels Group’s share price has also crept up 2.7 per cent, alongside food delivery company Ocado and betting firm Flutter Entertainment, both up 2.6 per cent.

Airlines and travel companies continue to struggle with little sign of international travel returning to normal in the near future. Mr Johnson announced last night the UK will enforce a two-week quarantine for all arrivals to the UK.

EasyJet and International Consolidated Airlines Group (British Airways's parent company) have seen 4 per cent and 2.3 per cent shaved from their share prices respectively.

imogen.tew@ft.com

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