London shares rose on Wednesday, outperforming European rivals as the pound fell and the food and travel industry rose on optimism about the end of the closings. The FTSE 100 UKX Index, + 0.99% rose 0.9%, while the Stoxx Europe 600 SXXP, -0.13% fell back from an all-time high, falling 0.2%. What drove the UK gains was a 0.5% drop for GBPUSD, -0.22%, which fell to $ 1.37530, a level not seen since the beginning of last week. A weak pound can help boost the FTSE, which is home to many multinational companies earning income abroad.
“The new quarter has turned the tables on the currency market, as the rally in bond yields that boosted the dollar alongside the British pound last quarter appears to have run out of fuel for now, giving the euro some life. and the yen devastated. ” Marios Hadjikyriacos, an investment analyst at XM, said in a note to clients. “Treasury yields have cooled in recent sessions, diminishing the dollar rate advantage,” he added. The yield of the 10-year note TMUBMUSD10Y, 1.652% rose to 1.66%, but well below the level of 1.77% observed at the end of March. The yield on UK 10-year government debt TMBMKGB-10Y, 0.788% has cooled to 0.789% from 0.847% at the end of March and 0.877% in mid-March. Elsewhere, bank stocks and mining stocks were helping to prop up the index, with HSBC HSBC, + 1.57%, HSBA, + 1.35% stocks up 1% and Rio Tinto RIO, + 2.68% RIO, + 2.67% rose 1.4%. Oil companies were also in the spotlight, with Royal Dutch Shell RDSA shares, + 1.11% RDS.A, + 1.12% flat. The energy giant warned of a $ 200 million hit to adjusted first-quarter earnings from a Texas storm, but would see a first profit for its upstream oil and gas unit since the COVID-19 pandemic. Read: Why Shell’s trade update still disappointed some analysts Shares of rival BP BP, + 2.28%, rose 2% after Tuesday’s gains as the oil group said it would hit its net debt target by almost a year earlier than expected. Cruise operator Carnival CCL shares also rose, + 7.92%, up 5%, along with gains from US shares of Carnival Corp. CCL, + 6.64% and Norwegian Cruise Line NCLH, + 5 , 10%. A spokeswoman for the Centers for Disease Control and Prevention, Jade Fulce, told Bloomberg on Tuesday that cruises could resume in mid-summer on a restricted basis. Carnival Corp.’s Cruise Line threatened Tuesday to take its ships to ports outside the United States. Pub trader Mitchells & Butler MAB’s shares, + 3.71%, rose 3%. Elsewhere, shares in Deliveroo ROO, + 2.05% were up nearly 3% on Wednesday, the first day an estimated 70,000 individual investors were able to trade with Amazon AMZN, a company backed by + 1.25% who bought during the poor debut. on the food delivery company’s stock exchange last week.