airlines easyjet ryanair IAG

The FTSE 100 has reached a record high as the bullish run continues. 

European stocks have enjoyed a positive streak over the past two months, and the recent weakness in the pound in relation to the US dollar has given the market an extra uplift.

It would appear the US and China are going to avoid a trade war as talks have improved. China has agreed to step up its purchases of US goods, and Washington DC has suspended its plans to impose tariffs on $150 billion worth of Chinese goods. This is also a factor in the feel-good mood this morning.

Ryanair this morning revealed an increase in profit, but issued a cautious outlook. Annual profit rose by 10% and revenue jumped by 7%. The number of passengers increased by 9%, and the load factor came in at 95%. The figures were impressive, but the guidance was downbeat. The outlook was ‘on the pessimistic side of cautious’ as staffing and fuel costs are expected to rise. Ryanair is expecting next year’s profit to be in the region of €1.25 and €1.35 billion, compared with this year’s €1.5 billion. The stock is up 2%.

AstraZeneca shares are higher this morning after the US Food & Drug Administration approved a drug for Hyperkalemia. The European regulator approved the drug in March. The update follows on from the company’s respectable first-quarter results reported on Friday.   

UK house prices increased by 0.8% in May to an average £308,075 – a record seven of 11 UK regions saw all-time high asking prices. It is worth noting that the number of sales across the board dipped by 5%. London and south-east England fell by 0.2% and 0.1% respectively. Stocks like Taylor Wimpey, Bovis Homes, and Persimmon are all higher this morning.

The US dollar index hit another multi-month high today as the prospect of a trade war with China has cooled. The positive run on the greenback continues as traders believe the Federal Reserve could raise rates three more times this year. EUR/USD and GBP/USD are both suffering on account of the firmer US dollar.

We are expecting the Dow Jones to open up 235 points at 24,950 and we are calling the S&P 500 17 points higher at 2,729. 

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