European markets staged a small recovery rally on Tuesday with investors flocking to two of this year’s hot sectors, healthcare and technology,” says Russ Mould, investment director at AJ Bell.
“In the UK, the FTSE 100 trades 0.3% higher at 5,823 with Just Eat Takeaway, Ocado and AstraZeneca among the stocks in positive territory. Interestingly, investors were also happy to bid up the commodities space with energy and mining stocks advancing.
“The price of oil and metals can be economic bellwethers and so today’s market reaction would suggest there is still a sense of optimism that the global economy can recover from the pandemic. Brent crude traded 0.1% higher at $41.48 and high-grade copper advanced 0.6% to $3.05.
“On the currency markets, the pound fell 0.4% against the US dollar to $1.2766 and it was also weak against the euro. An apparent U-turn from the Government on where people should work, back in favour of staying at home where possible, stirred concerns among investors that the UK’s chances of economic recovery could be derailed, at least temporarily.”