The FTSE 100 was firmly higher on Monday morning, taking its cue from strong Asian markets to rise 1% to 6,161.87.
“This mini-surge comes ahead of a week which could determine whether the next leg of the market’s response to coronavirus is to move up or down,” says AJ Bell investment director Russ Mould.
“The US second quarter earnings season kicks off in earnest from today, revealing how companies are coping with Covid-19 and the slow and patchy emergence from lockdown.
“There appears to be some optimism that forecasts have been lowered to such an extent that businesses will be able to clear this low bar and surpass expectations.
“Renewed hopes on coronavirus treatments and vaccines are also helping to underpin some optimism.
“On the economic front, analysts believe China returned to growth in the second quarter and trade figures out this week could also reveal the extent to which the world’s second largest economy has bounced back from the impact of the pandemic.
“Oil moved in the opposite direction to equities, slipping on speculation that producers’ cartel OPEC and its affiliates will effectively turn the taps back on by easing supply cuts. The Brent Crude price fell 0.9% to $42.86 per barrel.”