12 May 2021 | 12:09pm
StockMarketWire.com - The recovery in the FTSE 100 faltered by midday with the index 0.4% higher at 6,974.59 having briefly traded above 7,000 earlier on.
Sentiment was buoyed by stronger-than-anticipated economic data, with British gross domestic product falling 1.5% in the first quarter, beating expectations of a 1.6% drop.
Alcoholic drinks maker Diageo gained 3.1% to £32.875, on announcing that it would initiate the second phase of £4.5 billion capital return program, but extend its duration by two years to 30 June 2024.
The welcome move came as Diageo forecast organic operating profit growth to be at least 14% in its current financial year, slightly ahead of organic net sales growth.
Summer 2021 prices are up by 22% on average said the FTSE 250 group The Greek islands, the Balearics, the Canaries and Portugal will be the focus
TUI AG (LON:TUI) said demand for holidays in Portugal had rocketed since the country was put on the UK’s green list , with the travel operator switching to bigger planes to meet the demand.
Instead of Boeing 737s, TUI said it would be using Dreamliners to ferry passengers because they are larger.
“We are putting on Dreamliners instead of 737s, because we couldn t even find the slots, chief executive Fritz Joussen told reporters on Wednesday.
Travel in focus on Wednesday as TUI and National Express update the market
The macro diary will also be in focus with both UK GDP and US inflation data likely to draw investor attention
Travel will be in focus this week ahead of the lifting of the UK’s international travel ban next Monday, with both package holiday firm TUI and bus group National Express expected to issue results and updates respectively.
Meanwhile, macro data will also be in focus as investors await the latest UK GDP numbers as well as US inflation data, with the latter likely to draw scrutiny following previous interest rate comments from US Treasury Secretary Janet Yellen, who said last week that American interest rates may need to rise at some stage in response to inflation increases.
Travel stocks on the rise in anticipation of UK government’s green list for international travel
Tourism in the EU and the US may also be about to restart
Weekend reports suggested it might be between ten or 12 countries, including Malta, Gibraltar, Portugal and Israel.
Spain, Greece, France, the Seychelles and Iceland have also been rumoured as potential candidates.
The government’s travel plans involve a traffic light system of red, amber and green classifications for countries depending on the perceived COVID-19 risk.
The green category means that travellers are not required to quarantine although tests will remain mandatory.
Travel stocks are also getting a boost from the EU’s decision to allow entry for vaccinated people from low-risk countries, while there are also reports that the US is considering to restart tourism.