UK mid-caps hit two-month high on stimulus hopes; IHG jumps
Reuters
Published Aug 11, 2020 08:28
Updated Aug 11, 2020 09:35
By Sagarika Jaisinghani
(Reuters) - UK mid-caps rose to a two-month high on Tuesday as hopes of a stimulus-led rebound helped investors look past a mixed batch of quarterly earnings updates, while InterContinental Hotels jumped on signalling a tentative recovery.
The Holiday Inn owner (L:IHG) gained 3.4% after it said it was seeing some "very early" signs of returning demand as coronavirus-related restrictions eased in major markets.
The mid-cap FTSE 250 (FTMC) rose for a third straight session, as Bank of England Deputy Governor Dave Ramsden said the central bank would step up quantitative easing if the economy slowed again. June gross domestic product figures are due on Wednesday.
The blue-chip FTSE 100 (FTMC) added 1.6%, tracking gains in Asia and on Wall Street on relief that a U.S.-China spat appeared not to have spilled over into trade.
"The markets appear to have remained broadly immune to developments surrounding the U.S.-China saga," said Charalambos Pissouros, market analyst at JFD Group.
"(More stimulus) may add fuel to investor morale, pushing equities and other risk-linked assets further up and safe havens down."
Historic global stimulus and improving economic data have powered UK stock markets since a coronavirus-driven crash in March. Data on Tuesday showed British consumers spent the most in July since a coronavirus-led lockdown in March, as pubs, restaurants, barbers and beauty salons reopened.
Still, investors are cautious with unemployment remaining elevated and a resurgence in COVID-19 cases threatening another round of lockdowns, and the FTSE 100 has underperformed its European and U.S. peers.
Energy (FTNMX0530), life insurance (FTNMX8570) and travel-related (FTNMX5750) stocks were among the top gainers of the day, while homebuilders (FTNMX3720), utilities (FTNMX7570) and real estate (FTUB8600) firms lagged the wider market.
Housebuilder Bellway Plc (L:BWY) fell 1.1% as it constructed fewer homes in the year due to the lockdown, while Domino's Pizza Group Plc (L:DOM) slipped 2.6% on lower first-half operating earnings.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.