U.K. travel stocks lead FTSE 100 to 3-week higher after Monarch collapse
By Sara Sjolin, MarketWatch
U.K. manufacturing PMI on deck at 9:30 a.m. London time
The U.K.'s benchmark stock index rose for a fourth straight session on Monday, with British travel stocks rallying after discount carrier Monarch Airlines went into administration.
The FTSE 100 index rose 0.3% to 7,394.74, trading around its highest level since Sept. 12, according to FactSet data.
The London blue-chip index on Friday closed out the third quarter with a 0.8% gain, as it also scored a 0.8% advance for the month of September.
Travel stocks: October's upbeat start on stock markets was led by shares of easyJet PLC (EZJ.LN) , which climbed 4.5% after rival Monarch said it had been placed into administration and had cancelled all flights and vacations booked through the company. U.K. media described it as Britain's biggest airline collapse ever.
"The failure of Monarch is good news for rivals," said Neil Wilson, senior market analyst at ETX Capital, in a note.
"It means fewer seats to fill sector-wide -- more than 6 million in the case of Monarch. This should mean Ryanair and easyJet can comfortably improve load factors, even if the reputation of the former has suffered of late. This should be positive for margins despite pricing pressures," he added.