FTSE-100 surges more than 2% as covid lockdowns ease

The FTSE-100 Index today surged more than 2% as figures from Ryanair and Japanese economic data took centre stage.

The index jumped 127.81 points to 5927.39, starting the week on a positive note amid strong gains from giants such as GSK, which had good news on an HIV breakthrough medicine.

Ryanair has been one of the most aggressive airlines in saying it will get its planes flying again and today predicted it would lose e200 million, blaming reduced passenger numbers and the ability of airlines such as Lufthansa to offer cut-price deals when they reopen due to receiving state aid from their countries. However, the figures for last year were strong and the shares surged 4% in early trading.

British Airways owner IAG also had a 4% leap on hopes travel restrictions may not be as harsh as feared.

Data from Japan this morning showed it had moved into a recession in the first quarter of the year, contracting 3.4% on an annualised basis with the final quarter of the 2019 plunging 7.3%. It's a sign of how low we've sunk that those numbers were actually considered better than expected, so Asian markets actually gained, giving positive guidance for European markets.

Weekend reports that the EU and UK were working towards a Brexit hard stop at the end of December may take the shine off some the FTSE-100's gains as the week progresses, although covid remains by far the biggest impact on sentiment.

Great news from drugs giant GSK on its HIV trial of a long-acting injection to prevent men getting the disease should push shares in the group higher when the market opens. Tests for cabotegravir went so well that the trial has been stopped early. Shares jumped 1.5%.

Intu shareholders have already all but given up the ghost for their stakes in the shopping centres giant. The company which was hugely indebted going into the covid crisis is now demanding a standstill from its creditors. Expect a debt for equity swap at some stage although the company is still hoping to sell assets to raise money. Tough market to do that, though. Bombed-out Intu gained 5% but it's still worth less than 5p a share.

BP, Shell and the other oil companies should have a solid session as the price of crude oil leaped by a dollar a barrel to nearly $34 as world economies slowly get back into gear and up demand.