MARKET WRAP: FTSE 100 finishes higher, GBP strong, crude oil rebounds

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imageEconomy17 hours ago (Aug 10, 2021 16:35)

© Reuters.

Key Points

  • FTSE 100 closing price of 7,161, +0.4%
  • Flutter Entertainment flies as users increase
  • M&G, Abrdn fall after results
  • GBP higher on falling Covid cases, strong spending data
  • Oil rebounds from 3-week low
  • Bitcoin holds gains

By Samuel Indyk

Investing.com – The FTSE 100 finished higher on Tuesday as travel & leisure stocks continued to perform well amid falling UK Covid cases.

Flutter Entertainment (LON:FLTRF) was the best performing stock in the blue-chip index as revenue doubled in the first half of the financial year amid a surge in users. The Paddy Power owner said that as long as the sporting calendar remains “uninterrupted” and real estate can stay open, they forecast EBITDA of between £1.27-1.37 billion following the strong start H2.

At the other end of the index were financial services firms M&G (LON:MNG) and Abrdn (LON:ABDN). M&G reported a loss for the first half of the year and assets under management increased less than expectations.

Newly-rebranded Abrdn’s increase in assets under management was also less than forecast. The group, formally known as Standard Life Aberdeen, will be hoping that their fortunes turn around following the rebranding exercise.

GBP was strong with EUR/GBP falling to its lowest level since February 2020 as Covid cases continue to remain well below what some were forecasting weeks ago when the England eased many restrictions. Furthermore, 75% of UK residents were now vaccinated, although the UK reported 146 deaths from Covid, the highest since 14th February.

WTI and Brent crude futures rebounded from the 3-week low hit during Monday’s trading session on hopes that oil demand will continue to increase in the second half of the year, despite increasing cases in China. Looking ahead, the American Petroleum Institute releases its oil inventory data after market.

Cryptocurrencies continued their impressive rally with Bitcoin holding firm above $45,000, which is roughly where the 200-day moving average resides.

“It [Bitcoin] has had strong momentum behind it since Elon Musk arrested the slump last month and nothing seems to be standing in its way,” OANDA Senior Market Analyst Craig Erlam wrote in an emailed note. “We’ve seen these rallies before and extraordinary gains are very much the norm, so it’s anyone’s guess where price will be a month from now.”

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MARKET WRAP: FTSE 100 finishes higher, GBP strong, crude oil rebounds

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