UK shares opened on the front foot on Thursday as investors bet on new stimulus measures to drive a faster post-pandemic economic rebound, while a sustained recovery in China's services sector also lifted sentiment.
The benchmark FTSE 100 rose 0.8% to 5983.73, climbing for the second straight session, with life insurers and travel stocks leading gains. The mid-cap FTSE 250 index also advanced, adding 0.6% to 17815.78.
MOTORING HIGHER
Leading the blue-chips higher was turnaround specialist Melrose Industries (MRO) after it said it saw partial recovery in some of its markets.
Half-year results were predictably battered, with adjusted operating profit plunging 90% to £56 million in the first half, hurt by a coronavirus-driven downturn in the aerospace and automotive sectors.
But the shares rallied more than 12% to top the FTSE leader board at 112.65p.
Online trading platform CMC Markets (CMCX) said it expects 2021 earnings to surpass the higher end of market consensus, while pointing to a rise in costs as it brought on more clients for its services.
Shares in CMC rose more than 6% on Thursday to 332.5p.
E-commerce firm The Hut Group confirmed its intention to float on the London Stock Exchange, in potentially the biggest listing of a British company since 2013 and the first major London listing since the COVID-19 crisis.
British renewable power generator and network operator SSE (SSE) has been fined £2.1 million for failing to publish information on future generation capacity, Britain's energy regulator said.
But investors brushed the news aside, with the stock nudging 4.5p higher to £12.645.
French drugmaker Sanofi and its British peer GlaxoSmithKline (GSK) have started a clinical trial for a protein-based COVID-19 vaccine candidate, as pharmaceutical companies race to develop treatments against the COVID-19 pandemic.
Glaxo shares rose 7.5p to £14.967.
COMMODITIES IN FOCUS
London copper prices rose as data from China showed a steady economic recovery in the world's biggest copper consumer after the hit from the COVID-19 pandemic.
Gold recouped some of the previous session's hefty losses as the dollar steadied, although gains were capped by an uptick in risk appetite on recent better-than-expected economic data.
Oil prices edged up, but held near multi-week lows hit overnight after U.S. data showed gasoline demand fell and recovery from the COVID-19 pandemic was lagging.
STOCKS WRAP
Tritax Big Box REIT (BBOX) nudged up 1.1% to 156.5p after announcing it had completed the sale of its Chesterfield asset for £57.3m.
The price was a premium to the 30 June 2020 book value and reflected a return of 18.5% per annum.
Pensions firm Curtis Banks (CBP) has fallen 1.4% to 216p as the self-invested pension plan provider maintained its interim dividend despite a fall in profit on client portfolio impairment from the impact of the Covid-19 pandemic and Brexit uncertainty.
Digital services company Kainos (KNOS) fell 4% to £10.76 after it reported that trading since April to date continued to be 'resilient' across its businesses and anticipated that annual results would be in line with market expectations.
Kainos is one of Shares investment ideas for 2020, pitched at 718p.
