© Reuters.

Key Points

  • FTSE 100 closing price of 7,064, -0.6%
  • Airlines drag UK shares lower
  • USD strong after data, NFP tomorrow
  • Oil steady after inventory data
  • Cryptocurrencies post gains

By Samuel Indyk

Investing.com – The FTSE 100 fell on Thursday with travel and leisure stocks bearing the brunt of the losses following the UK government’s latest travel plans. Not only are none of the UK’s main tourist destinations set to be added to the government’s ‘green list’ but Portugal is due to be taken off the list, meaning passengers returning from the Iberian nation will have to quarantine upon their return.

British Airways parent IAG (LON:) was the worst performing stock in the following the leaked details about the travel plans, ahead of the official announcement this evening. EasyJet (LON:), Wizz Air (LON:) and Ryanair (LON:) also posted losses amid the delays to international travel.

“This decision essentially cuts the UK off from the rest of the world,” .

Another company that will feel the brunt of lower international travel is Rolls-Royce (LON:), who relies on its engines clocking up mileage.

“The situation is also being seen as a drag on the fortunes of Rolls-Royce, the aircraft engine manufacturer and supplier of maintenance for jets, as recovery in its commercial business retreats a little further on the horizon,” said Hargreaves Lansdown (LON:) Senior Investment and Markets Analyst Susannah Streeter.

“There is still a glimmer of hope that swift vaccination roll outs will make way for a late summer revival in fortunes, but the travel industry is now going to have to play an even bigger game of catch up.”

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Johnson Matthey (LON:) shares outperformed after the company signed an agreement with Nano One to develop lithium-ion battery materials. Johnson Matthey, which traditionally makes its revenue from catalytic converters, has been investing in technologies that will be at the forefront of the modern automotive industry and this partnership appears to be another step in that direction.

The reclaimed the 90.00 handle after strong labour market data from the US. Firstly, said the US created 978,000 jobs in May, above the expected 650,000. Secondly, initial fell below 400,000 for the first time since the , falling to the lowest level since mid-March last year. The strong labour market data comes ahead of Friday’s report which will be closely watched after the disappointment of April’s figures.

GBP was also relatively strong, trading flat against the but gaining against the after IHS Markit’s posted its highest reading in 24 years as pubs and restaurants reopened following the strict lockdown restrictions in place since the start of the year.

and crude futures were relatively steady with focus on the delayed crude oil inventory data. The said crude inventories fell by 5.08mln barrels in the latest week versus expectations of a draw of 2.443mln barrels.

Most of the major cryptocurrencies posted solid gains but found resistance ahead of the key psychological $40,000 level. Meanwhile, found some resistance at the 50DMA at $2,890, briefly touching that level before paring some of the earlier gains.

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