Burberry was back in fashion as investors flocked to the luxury goods sector following LVMH’s very strong update yesterday. The latter’s first quarter sales were ahead of expectations, fuelling investor optimism that other names such as Burberry could also be in the same sweet spot.
“A lot of people will have saved cash during the pandemic and there is an expectation for a big spending spree as countries ease lockdown restrictions,” said AJ Bell’s Russ Mould.
“The energy and mining sectors were also in demand on Wednesday, though not enough to lift the FTSE 100 which traded flat at 6,894. Supermarkets and banks had a bad day, acting as a drag on the index.
“In the US, investors eagerly awaited today’s stock market debut of bitcoin exchange Coinbase. Cryptocurrencies have taken off in the past few years and investor appetite grows stronger for different ways to play the game. Coinbase’s share price performance is likely to be as volatile as cryptos themselves.”