FTSE finishes lower, GBP unchanged, Oil weak By Investing.com

Key Points

• FTSE 100 closing price of 6,915.69, -0.38%
• For the week, the FTSE 100 increased 2.69%
• Tui shares fall following convertible debt issuance
• FTSE 350 Travel & Leisure sector weak as UK announces travel plans

By Samuel Indyk

Investing.com – The FTSE 100 finished Friday lower but still had a relatively strong week, rising a total of 2.69% as the GBP softened and global markets pushed higher. Much of the rally this week comes on the back of the strong data from the US with European bourses playing catch-up after the Easter break.

In individual stocks news today, tour operator Tui (LON:TUIT) shares tumbled after the company announced it is to raise up to EUR 400mln via a convertible bond issuance. UK airlines were also soft after the government announced its framework to try and safely reopen international travel from the UK in time for the summer. The report showed how international travel could resume from 17th May 2021 but it could come at a cost for the traveller, depending on how many PCR tests they may need to take before travel.

Smaller listed Novacyt (LON:NCYT) saw its shares fall as much as 40% after the company said it had not agreed an extension to its contract with the UK Department of Health and Social Care (DHSC). The deal with the DHSC accounted for approximately 50% of the company’s revenue in Q4.

GBP was trading broadly unchanged against the USD with GBP/USD holding firm above 1.3700. Nevertheless, the pair was heading for its biggest weekly decline of 2021 amid concerns about the slowing speed of the vaccine rollout. The speed of administering vaccinations has slowed in the UK, while Germany is vaccinating at its fastest pace. EUR/GBP has rallied over the latest week and is on track for its biggest weekly rise since September 2020.

WTI and Brent crude futures were marginally lower as fears over demand and increasing supply weigh on prices. The monthly survey from S&P Global (NYSE:SPGI) Platts suggested that OPEC+ oil output increased 450,000 barrels per day in March. Meanwhile, rising Covid-19 infection rates in India and South America continue to dent the demand outlook.