UK shares set for strong weekly gains, travel stocks soar

London-listed shares rose on Friday and were set for their third straight week of gains as optimism around a post-coronavirus economic recovery drove investors back to riskier assets, while travel stocks surged to their highest in nearly three months.

The blue-chip FTSE 100 was up 1.2% and on course for its best week in nearly two months, with BP Plc and Royal Dutch Shell Plc gaining on higher oil prices. EasyJet, cruise operator Carnival and British-Airways owner IAG jumped more than 8% as a report said https://www.ft.com/content/59fc4439-42b3-4de4-8276-5948d4514c4f some European countries were keen to adopt transport corridors, letting British holidaymakers visit Mediterranean resorts without quarantining for 14 days on their return.

The mid-cap FTSE 250 added 1.6%, with consumer discretionary, industrial and financial stocks among the top boosts. "There is a lot more money sitting on the sideline to be invested as the rally continues and any resistance to believe and trade it otherwise is futile," said Stephen Innes, market strategist at AxiCorp.

UK stocks are back at near three-month highs following a coronavirus-induced crash in March as raft of global stimulus helped investors look past data underling the damage from the outbreak. Still, analysts warned a recovery in the real economy might take longer than expected with the near global shutdown sparking millions of layoffs and raising the prospect of widespread bankruptcies.

Latest data showed British retail sales dove 18% in May, while consumer confidence remains at its lowest in a decade. Housebuilder Taylor Wimpey rose 4.8% after it said it had seen a surge in interest in buying homes since its English sales centres and show homes came back on line.

Premier Oil surged 10.8% after saying it would issue discounted shares to activist hedge fund ARCM representing 8.91% of the company to pay for North Sea assets from BP.