Home > Ford shares hit 20-year high, IAG jumps 12% as FTSE 100 gains nearly 2%- Market recap

Ford shares hit 20-year high, IAG jumps 12% as FTSE 100 gains nearly 2%- Market recap

  • Ford shares rose to the highest price since 2001 after news the company is set to double the production of its electric truck.

  • In London, the FTSE 100 closed 1.63% higher, with travel and energy shares top performers.

  • Shares of IAG surged 12%, topping 160p.

The FTSE 100 index saw an upbeat session on Tuesday as traders returned from the holidays. Despite rising concerns over the new wave of Covid-19 infections, the UK benchmark index surged nearly 2% as investors sought to position for the year with picks in travel, leisure and energy sectors.

Wall Street saw a mixed session on Tuesday as the Nasdaq composite fell 1% while there were marginal gains for the S&P 500 and the Dow Jones Industrial Average.

Ford shares jump to 20-year high

On Monday, Apple shares rose above $186 to see the iPhone maker become the first US company to hit the $3 trillion market valuation milestone. The session also saw shares of electric vehicle maker Tesla jump more than 13%. On Tuesday, one of Wall Street’s major gainers was automaker Ford.

Ford stock gained by about 12% as Tuesday’s session yet saw another Wall Street automaker post impressive production results. The company’s shares closed at $24.36 after racing to intraday highs of $24.56, the highest price level for the stock since August 2001.

Strong demand is set to see Ford ramp up production for the F-150 Lightning truck, up from a previous projection of 80,000. The 2023 target comes after customer interest in the electric pickup truck peaked with a waiting list of over 200,000 reservations.

IAG shares jump 12%

Shares of the International Consolidated Airlines Group (IAG), which owns British Airways, closed higher on Tuesday after rallying more than 12% on upbeat outlook for the travel sector.

IAG shares clocked intraday highs of 160.90p before closing just a shade lower at 159.94p to see a 12.04% upside on the first trading day for the FTSE in 2022. Wizz Air and easyJet also gained, edging 9% and 12% respectively.

UK airline shares jumped a day after similar performances by airline stocks on Wall Street, with the sector buoyed by a Citigroup research note that struck an optimistic view for the sector in the face of the Omicron variant risks.

The optimism saw shares of major airline companies soar on Monday, with American Airlines Group, Delta Air Lines and United Airlines Holdings all registering +5% moves.

Treasury yields, oil and gold

The UK 10-year Treasury yield is down 0.004 basis points at 1.081%, while the US 10-year T-note yield has declined to 1.644% after Tuesday’s surge to 1.659%.

Oil prices moved higher on Tuesday after OPEC+ members agreed to increased production by 400,000 barrels. The West Texas Intermediate crude price rose to $77.19 per barrel, while Brent crude was above $80 per barrel on Wednesday morning.

Meanwhile, gold price rose 0.61 to $1,815 per ounce, but is still down from recent highs above $1,821 per ounce.

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