The UK’s major markets rallied in opening trade on Monday as hopes of more stimulus to kickstart a battered global economy bolstered risk appetite.

The benchmark FTSE 100 jumped more than 2% in early trade, hitting a two-week high at 6294.16, while the FTSE 250 was also firmly higher,joining in an Asian rally that was powered by a surge in China’s blue chip stocks even as soaring US coronavirus cases delayed reopenings.

The mid cap index added close on 1.5% to 17,551.36 with banks, construction and insurers among the early advancers.

UPBEAT BARRATT

UK homes builder Barratt Developments (BDEV) surged more than 6% to 519.7p after reporting a stronger order book and said it was starting the new financial year with ‘cautious optimism’ after the Covid-19 pandemic halted construction activity and hit deliveries.

Blue-chip peer Persimmon (PSN) rallied more than 6%, to £23.975, to top the FTSE 100 leader board, with Taylor Wimpey (TW.) also higher, adding 5% to 143.95p.

High street bank Lloyds Banking (LLOY) added 2.5% to 31.8p on announcing that chief executive Antonio Horta-Osorio would stand down next year, having spent a decade at the helm.

The bank also announced that former UBS banker Robin Budenberg would succeed Norman Blackwell as its chairman, in early 2021.

Insurer and wealth manager Aviva (AV.) rallied 4.5% to 285.85p after it announced that chief executive Maurice Tulloch had stood down with immediate effect for family health reasons.

Tulloch had been replaced by current director Amanda Blanc, who was previously head of Europe, the Middle East and North Africa at Zurich Insurance.

MOVING ON THE MARKET

Mining company Hochschild Mining (HOC) dropped 5.5% to 177.5p, having temporarily halted operations at its Inmaculada mine in Peru after a 'number of workers' tested positive for Covid-19.

Cinema group Cineworld (CINE) gained 5.8% to 63.65p despite Canada's Cineplex initiating legal action against the company after it walked away from a $2.3bn merger deal.

Consumer goods group UP Global Sourcing (UPGS), also known as Ultimate Products, rallied 10% to 74.2p after it announced that it expected its annual profit and revenue to beat market expectations.

Pest control group Rentokil (RTO) rose 0.4% to 517.4p on announcing that it had appointed Stuart Ingall-Tombs as its new chief financial officer.

Ingall-Tombs was currently CFO of the company's North American division. He was replacing Jeremy Townsend, whose looming departure was announced in February.

Middle East and Africa focused payments group Network International (NETW) gained 2% to 461.2p even as it warned that it expected its annual revenue to fall somewhere around 17% to 20% as the Covid-19 crisis continues to hurt economies in those regions.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Issue Date: 06 Jul 2020