A surge in big oil companies boosted Britain's FTSE 100 on Tuesday, with investors counting on a revival in economic activity as several countries emerged from coronavirus lockdowns.
Brent crude futures soared to more than $30 per barrel on hopes of a recovery in vehicle traffic and fuel demand, sparking a more than 5% gain in shares of BP and Royal Dutch Shell.
The commodity-heavy FTSE 100 snapped a three-day losing streak with a 1.7% gain. The domestically focused midcap stocks lagged with a 0.9% rise as the latest services sector activity data pointed to a 7% quarterly fall in Britain's gross domestic product.
The FTSE 100 has now recovered about 19% from an eight-year low that it hit in March, partly on historic global fiscal and monetary stimulus, and shrugging off mounting evidence of the COVID-19 pandemic's economic damage.
Low-cost airlines Ryanair and Wizz Air reported a near total wipeout in passenger numbers in April, but their shares rose 2.5% and 0.4%, respectively, after Wizz Air said it expected its figures to improve in May.
Virgin Atlantic revealed plans to cut 3,150 jobs and move its London Gatwick operations to the bigger Heathrow airport. Bigger rival, British Airways owner IAG, fell 3.9% to the bottom of the FTSE 100.
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