The FTSE 100 index has been on a strong upward trend for two consecutive days. The index is currently hovering at 7038.9 sterling pound which is a 0.27% increase.
UK Rapid Economic Growth
The FTSE 100 index has reacted to the strong economic data in the United Kingdom. According to the Office of National Statistics, the volume of retail sales in Britain have recorded a 9.2% increase in April. The UK economy is rising faster than expected after taking a nosedive at the onset of the Corona virus pandemic. Chris Williamson, chief business economist at IHS Markit, said:
“The output and order book growth seen in May, and record level of business optimism, are consistent with GDP rising sharply in the second quarter.”
Industrial software group, Aveva Group Plc, is among the FTSE 100 shares to watch. The company’s shares fell 22% at the onset of the Corona pandemic after increasing for three consecutive years. The company is struggling to recover from its loss. The company is confident that with partnerships from different renowned companies it will be able to regain its highs.
Investors are counting on the online sales from the Marks & Spencer to support the company after the pandemic heavily weighed on the firm. Investors are hoping for the firm to push the economy a bit higher.
The Aviva Plc was slightly affected by the lockdown restrictions. The company has gained a lot of profits for the last one year. According to Barclays, Aviva has nearly £3.7 billion excess capital. Barclays stated that:
“With Aviva making strong strides in bulk annuities in recent years, we anticipate that management may hold back c.£0.7bn for bulk annuity deals but return c.£3.0bn to shareholders in the form of share buybacks.“
Investors are also eyeing the SSE power company which are up 5%. The company is expected to record a £200 million profit after the Corona virus effects.
Top Movers in UK
The best performer in the United Kingdom is Flutter Entertainment. Other top performers include Compass Group Plc, Entain plc, Intercontinental Hotel Groups, among others.
The worst performers include Fresnillo, Antofagasta ,among many others.