LONDON: London-listed shares rose on Thursday on hopes of more US stimulus and signs that the British government would not impose another sweeping national lockdown, but a slide in oil stocks capped gains.
Markets globally held steady after the Trump administration on Wednesday proposed stimulus measures worth $1.5 trillion, including $20 billion of aid for the airline industry.
The more domestically focused mid-cap index rose 0.4%, while the blue-chip FTSE 100 edged up 0.2%. Defensive plays such industrials, utilities and healthcare stocks were among the top boosts as Brexit concerns remained.
The FTSE 100 has been range bound over the past month as new restrictions 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.
Oil stocks slumped 3.4% to a two-month low as crude prices dropped more than 5%, with a rise in OPEC output last month and rising coronavirus cases dampening the demand outlook.
Among individual shares, Rolls-Royce dropped 10.2% after the aero-engine maker said it planned to raise 2 billion pounds ($2.6 billion) from shareholders, 1 billion pounds from the bond market and secure further loans to rebuild its balance sheet after the pandemic.
Retailer Halfords surged 31.5% 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.
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