LONDON, Oct 1 — London-listed shares followed Asia higher today on hopes of more US stimulus, while sentiment at home was lifted by signs the government would not impose another sweeping national lockdown to contain a resurgence in Covid-19 cases.
Markets globally held steady after the Trump administration yesterday proposed stimulus measures worth US$1.5 trillion (RM6.2 trillion), including a US$20 billion aid for the airline industry.
British Environment Secretary George Eustice said the government was seeking to avoid a full national lockdown to prevent unemployment soaring into the millions.
The blue-chip FTSE 100 index climbed 0.7 per cent with insurance and banking stocks leading gains, while the mid-cap index rose 0.4 per cent.
“The government’s call to avoid a national lockdown has helped the market gain some ground (while) seeing some fresh money coming in on the back of a new quarter,” said Keith Temperton, a trader at Forte Securities.
The FTSE 100 has traded in a range-bound manner over the past month as fresh movement curbs and rising Covid-19 infections offset hopes for an economic revival on the back of fresh stimulus measures.
Sentiment on Thursday was lifted as a survey showed British factory activity grew for the fourth month in a row in September and the sector cut the fewest jobs since before the Covid-19 lockdown.
Shares of Rolls-Royce dropped 6.4 per cent after the aero-engine maker said it planned to raise £2 billion from shareholders, £1 billion from the bond market and secure further loans to rebuild its balance sheet after the pandemic.
Retailer Halfords surged 20.2 per cent to its highest level since June 2019 after it raised its first-half profit outlook as it continued to benefit from a cycling boom during the pandemic. — Reuters