Market report: Travel stocks fly higher as FTSE 100 rises on virus hopes

Trading screens are awash with green today as investors took a bullish stance on a slowing coronavirus death roll across Europe.

European stocks rallied for the second day running amid signs that the peak on the Continent may be nearing.

The FTSE 100 rose 147.48 points to 5729.87 while the markets in France and Germany were also on the up. The pound — which dropped sharply last night on news Prime Minister Boris Johnson is in intensive care — wiped out those losses and rose 0.24c to $1.2330.

Britain’s battered travel stocks enjoyed some respite as investor appetite for risk improved. Cruise operator Carnival topped the FTSE 100, up 22% at 877p, with easyJet flying 26% higher at 695p and British Airways owner IAG ascending 15% to 259p.

Down on the ground, troubled car dealership chain Inchcape was also on the charge. Industry data yesterday showed a 40% slump in new car sales in March. Inchcape scrapped its dividend and said bosses would take a 20% pay cut as it cuts costs. But investors took heart as the company said, although it has access to £600 million funding, it is in talks to access its Coronavirus Corporate Financing Facility. The shares revved up 8% or 30p to 466p.

The gyrations in the oil price continued as markets attempted to get a grip on the political situation. US president Donald Trump said the Opec cartel had not asked him to cut US production. Price war adversaries Russia and Saudi Arabia are expected to agree a production cut on Thursday, but potentially only if America cuts too. Brent crude today rose $0.56 to $33.61, with oil majors Shell and BP up 3% to 1527p and 2% to343p respectively. Debt-laden oiler Premier Oil — under attack from Hong Kong hedge fund ARCM — rode the rising market despite reporting a well in Alaska had turned up disappointing results. The stock rose 9% to 27p.

Share placings have become commonplace of late as companies move to shore up their balance sheets. Today newsagent chain WH Smith said it had beaten its target of raising £150 million through a fundraiser, raking in £165.9 million to help see it through the crisis. The stock rose 5% or 52p at 1146p.

Aim-listed currency hedging specialist Alpha FX was also on the fundraising trail. The shares had been on a strong run before it last week admitted that clients’ working capital drying up had hit trading. It now plans to raise £20 million with a placing at 680p a share. The stock shot up 16% or 114p to 809p.

Small-cap spotlight

The gentle sounds of waves lapping on the shoreline may feel a million miles from the crisis-gripped City right now, but investors still had the sea on their minds. Shares in the technology firm Benchmark, which studies fish genetics to help food producers, rose 1.25p to 27.75p as it named Trond Williksen as its new chief executive. The seafood industry veteran was most recently was the CEO of a Norwegian salmon fishing business. The stock, which was held by fallen funds star Neil Woodford until last year, began the year around 44p.