The Rolls-Royce (LON: RR) had a relatively strong September. The stock managed to rise from a monthly low of 100p to more than 140p. It rose by more than 40%, becoming one of the best performers in the FTSE 100.
Why RR shares rose
There are several reasons why the Rolls Royce share price rallied in September. First, the United States announced that it will relax its aviation industry. Precisely, it said that it will start allowing visitors from the European Union, provided that they had received a vaccination. This was a notable announcement because of the big business of TransAtlantic travel.
Second, the United States, United Kingdom, and Australia came together in a new multilateral deal. The deal will see the US and the UK provide Australia the technology it needs to build its nuclear-powered submarines. Analysts believe that the deal will be of great importance to companies like Rolls-Royce and BAE Systems.
Third, Rolls-Royce received a major deal from the United States government. The deal, which is valued at more than $2.6 billion will see the company build engines for the B-52 fighters. The engines will be manufactured at the company’s US plants.
In the same period, the company managed to sell its ITP Aero business as part of its disposal program. It also unveiled its electric aeroplane.
The Rolls-Royce share price will likely maintain the bullish trend in October as the aviation industry recovers. While the world is seeing more Covid cases, there is a likelihood that more governments will ease movements for the vaccinated.
Rolls-Royce will not have any financial releases this month. Therefore, investors will be guided by the performance of the aviation sector. The next key
