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UK firms see a rise in stocks as Covid-19 restrictions ease in China

Date: June 08, 2022 Meghna Singh Meghna Singh
UK firms see a rise in stocks as Covid-19 restrictions ease in China 
Shares of firms across the UK were reportedly trading higher at the start of the week as European trading was lifted by the lifting of some Covid-19 restrictions in Asia.



Stocks performed well too, despite cautious pound trade ahead of UK Prime Minister Boris Johnson's vote of confidence Monday evening.



The FTSE 100 finished the day at 7,608.22 points, up 75.27 points, or 1%.



The pound fell 0.12% against the US dollar to 1.254 but gained 0.2% versus the euro to 1.171.



CMC Markets UK chief market analyst, Michael Hewson, stated that European markets had a healthy start to the week following a positive cue from Asian markets, which were bolstered by the gradual removal of restrictions in China’s COVID-affected cities, which have acted as a damper on sentiment for over two months.



Hewson further stated that this positivity has been reflected in outperformance in basic resources, with oil process also creeping higher as Saudi Arabia hiked prices to Asian markets after announcing a production increase of roughly 648,000 barrels per day beginning in July.



The FTSE 100 was supported by Shell and BP, which retested last week's record levels but failed to break above them.



Rio Tinto, Glencore, and Anglo American all had a good day thanks to increasing commodity and metal prices.



Other major European markets were trading equally strong, with the exception of pharmaceuticals, which performed poorly.



By the end of the day, the German Dax had risen 1.34%, while the French Cac had risen 0.98%.



The US markets also climbed on Wall Street, following the lead of Europe and Asia, to overcome a loss at the conclusion of last week.



In other developments, Eve Sleep's stock plunged after the firm announced that it will miss revenue objectives for the year due to poor consumer conditions.



The company's executives also informed shareholders that they are looking for a new owner to turn the organization private.



As a result, the firm's share price fell 0.35p to 1.3p on the day. Following a huge drop last week, the price of oil has only dropped slightly.



Source credit: https://www.independent.co.uk/business/london-markets-jump-as-china-eases-covid-restrictions-b2095073.html

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.