The FTSE 100 made a strong start to trading after the Bank Holiday, taking its cue from strong trading in Asia and the US.
All the focus this week will be on interest rate decisions in the US and UK and a so-called ‘mini budget’ from new chancellor Kwasi Kwarteng on Friday.
Despite the pressures on household finances, travel operator TUI suggests Britons are still desperate to go on holiday and that they are willing to pay higher prices to jet off abroad.
AJ Bell investment director Russ Mould said: “That resilient market is likely to be tested like never before in the coming months and while a week in the sun may be being prioritised for now, there comes a point where it’s just not affordable even for middle-to-higher-income families.
“The company does not have much visibility as customers are typically booking later. As it returns to profit, TUI must hope that some of the pressures on consumer spending ease.
“Ideally by the time next summer rolls around, there will still be capacity and appetite for people to spend on holidays and the significant disruption at airports which scarred 2022 is a thing of the past.
“It turns out Moonpig can’t fly as it nosedived on a mixed trading update. While it is sticking with existing guidance for now, news it is retrenching to focus on card sales – rather than the little extras like chocolates and gifts which provide useful ancillary revenue – and a return to the seasonality seen pre-Covid aren’t messages engineered to enthuse shareholders.”