By Steve Goldstein
Investors snapped up hard-hit energy and travel stocks on Tuesday, gaining ground in anticipation of the U.K. and global economy returning to normal when COVID-19 vaccines are made available.
Led higher by integrated oil companies BP /zigman2/quotes/202286639/delayed UK:BP -2.84% and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -2.72% , the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.59% rose 1.3%. News that the presidential transition in the U.S. was under way provided a further spark to sentiment from the third straight Monday in which positive COVID-19 vaccine news was announced.
Companies exposed to the travel sector also advanced, with engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -3.82% and hotels operator Whitbread /zigman2/quotes/207954631/delayed UK:WTB -1.95% each rallying.
Catering giant Compass /zigman2/quotes/200043088/delayed UK:CPG -5.38% rose 4%, after reporting a 78% drop in fiscal year ending Sept. 30 adjusted earnings per share, and didn’t pay a final dividend. Bank of America analysts said the margin guidance was encouraging but the volumes recovery is likely to be gradual.
Outside the FTSE 100, infrastructure software maker Micro Focus /zigman2/quotes/207956281/delayed UK:MCRO -2.40% , catering company SSP /zigman2/quotes/205370875/delayed UK:SSPG -7.06% , travel conglomerate TUI /zigman2/quotes/207049334/delayed UK:TUI -0.57% and cruise operator Carnival /zigman2/quotes/210414141/delayed UK:CCL -6.19% each sported double-digit gains.