London pre-open: Stocks to rally after Bank Holiday break

Tue 26 May 2020

LONDON (SHARECAST) - (Sharecast News) - London stocks were set to rally at the open on Tuesday, taking their cue from strong gains in Europe a day earlier as investors welcomed news of further lockdown easing.
The FTSE 100 was called to open 137 points higher at 6,130.

CMC Markets analyst Michael Hewson said: "With UK and US markets off yesterday, markets in Europe picked up from their strong gains of last week by getting the week off to another good start with the German DAX breaking higher and hitting its highest levels since the Friday 6th March, as it starts to fill the price gap between the Friday close at 11,541 and the opening price of the Monday of the following week.

"A couple of corporate stories helped smooth the way as reports filtered through that Germany's troubled national carrier Lufthansa was on the brink of €9bn bailout deal from the German government, while German pharmaceutical giant Bayer also surged on reports that it reached agreements on some of its 'Roundup' lawsuits in the US.

"The French government also seems to be keen to step in with similar rescue packages of their own with reports that Renault, which is already 15% owned by the French government could receive further state funding.

"Combined with a better than expected German IFO report for May, along with further relaxations of lockdown restrictions as economies across Europe continue to open up, has encouraged a belief that the worst is behind us in terms of death and infection rates as well as economic shutdowns."

On home shores, the mood was boosted by news that non-essential shops will be allowed to re-open on 15 June.

In corporate new, luxury car maker Aston Martin confirmed the departure of chief executive Andy Palmer to be replaced by AMG chief Tobias Moers in August.

Keith Stanton, currently vice-president and chief manufacturing operations officer, was appointed interim chief operating officer to support the company's new chairman, Canadian billionaire Lawrence Stroll.

EasyJet chief financial officer Andrew Findlay has resigned just days after the airline's founder Stelios Haji-Ioannnou failed to remove him and three other leading board members. The FTSE 100 company said Findlay was expected to work his year's notice while the board looks for a replacement.

He has been CFO for almost five years.

On Friday Haji-Ioannno forced a special meeting of easyJet shareholders but his resolutions to unseat Findlay, chief executive Johan Lundgren, chairman John Barton and the company's senior independent director were voted down.
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