Week in Review: FTSE 100 races higher on coronavirus vaccine hopes

FTSE NEWS

The FTSE 100 raced higher on Thursday (2 July) following reports of a potential new vaccine for the coronavirus. London’s leading index ended the day up 1.34% higher at 6,240.36.

• CIPS/Markit kicks off the week with the latest iteration of its construction PMI survey on Monday (6 July).
• The Confederation of British Industry and PricewaterhouseCoopers reveal the results of a survey focussing on business optimism levels on Tuesday (7 July).
• On Wednesday (8 July), the Treasury will hold an evidence session on the economic impact of the coronavirus.
• The Royal Institution of Chartered Surveyors gives its take on the health of the property market on Thursday (9 July).
• On Friday (10 July), IEA’s Oil Market Report will reveal the latest trends in the sector.

SECTOR IN FOCUS

Airline shares soared on Thursday (2 July) following news that the Government was about to exempt dozens of countries from its travel quarantine. At the moment, anyone travelling into the UK must self-isolate for two weeks, unless they are coming from the Republic of Ireland. However, those rules could be waived from as early as next week for those travelling into the UK from up to 75 countries deemed a low coronavirus risk. Shares in British Airways owner International Consolidated Airlines Group (IAG) and easyJet plc (EZJ) flew off the back of the news.

ECONOMIC UPDATE

With the UK emerging from lockdown, the Government is keen to talk about its post-coronavirus plans for the economy. This week, Prime Minister Boris Johnson promised to “tackle this country’s great unsolved challenges”. These include building more homes, fixing the NHS, tackling the skills crisis, mending productivity and improving connectivity, which, he said, would “unleash Britain’s potential”. Chancellor Rishi Sunak is expected to flesh out these plans in an economic update scheduled for Wednesday (8 July).

FUND WATCH

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COMPANY ANNOUNCEMENTS

7 July – Halfords Group plc (HFD) has beat expectations throughout the coronavirus pandemic, no doubt in part because it has been able to keep a large number of its stores open throughout lockdown. That said, the retailer is expected to announce a hit to sales when it reports its full-year results on Tuesday (7 July).

7 July – JD Sports Fashion plc’s (JD) share price has recovered strongly since the big market sell-off in March. However, whereas the retailer was one of the stars of the High Street, some analysts have begun to question its ability to outperform long-term. The firm will have a chance to win back the doubters on Tuesday (7 July) when it publishes its full-year results.