LONDON: London stocks rose on Thursday after the government and Bank of England both ramped up stimulus programmes to cushion the struggling economy as England goes into a second national lockdown.
The blue-chip FTSE 100 index closed 0.4% up, with shares in insurer RSA Insurance Group Plc surging 45.7% after it reported a rise in underwriting profit and said pandemic-related exclusions would limit lockdown impacts.
The domestically focused mid-cap FTSE 250 ended 0.7% higher after finance minister Rishi Sunak extended the government's costly coronavirus furlough scheme until the end of March and announced billions of pounds in other forms of support.
Auto distributor Inchcape Plc jumped 6.6%, after a beat-and-raise quarter, while Trainline Plc jumped 12.5%, as JP Morgan upgraded the stock to 'overweight' after first-half results.
Supermarket group Sainsbury's Plc tumbled 5.2% after it reported a first-half pretax loss and warned of 3,500 job cuts in restructuring. Earlier on Thursday, the BoE expanded its already huge asset purchase programme by a further 150 billion pounds ($195 billion) helping the government to fund the surge in public spending.
"Today's announcements are vital steps to shelter the UK economy through a difficult winter. The extension of the furlough scheme will help provide a much needed bridge for households and businesses until the economy can reopen," said Ambrose Crofton, global market strategist at J.P. Morgan Asset Management.
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