LONDON, June 2 — UK shares climbed today as hopes of fresh government stimulus to blunt the economic impact of the coronavirus crisis added to optimism about a faster recovery with the easing of a nationwide lockdown.
The blue-chip FTSE 100 was up 0.7 per cent as a report said finance minister Rishi Sunak was considering national insurance holidays for companies as part of a stimulus package to be announced in July.
The mid-cap FTSE 250 added 0.8 per cent, hitting its highest in nearly three months, although a broader rally was capped by growing Sino-U.S. friction and President Donald Trump’s vow to use military to end violent protests in American cities.
Greeting card retailer Card Factory signalled it would reopen about 10 per cent of its stores from June 15, but its shares slipped 0.6 per cent as it warned business would suffer from social distancing.
Market sentiment is being boosted by “a raft of companies making headway in getting back to normality and that’s going to be the common theme unless there’s a spike in new cases or governments rethink the reopening policy,” said David Madden, analyst at CMC Markets.
The domestically focused FTSE 250 has recovered about 40 per cent from its March lows as investors looked past dire economic figures. Data today showed Britain’s house prices crashed in May, but there were early signs of activity picking up.
The UK travel index rose 1.6 per cent as a report said the government was aiming to replace coronavirus quarantine for people arriving at airports by the end of June, with so-called air bridges being considered an option.
Mediclinic International Plc, owner of a chain of private hospitals in southern Africa, the Middle East and Switzerland, jumped 6.2 per cent to the top of the FTSE 250 even as it reported an annual loss. — Reuters
