London stocks rise on earnings boost, virus worries cap gains

British shares ended higher on Thursday as a slew of upbeat corporate earnings supported investor sentiment at a time when rising cases of COVID-19 and fresh lockdowns across Europe raised concerns about fiscal health.

The blue-chip FTSE 100 index gained 0.8pc, after three consecutive sessions of declines, with mining and energy stocks gaining the most.

"Investors are more or less sitting on the sidelines and trade is expected to be subdued as the market waits for more forward earnings guidance from corporates to assess the damage from climbing virus cases," said Andrea Cicione, head of strategy at TS Lombard.

Miners BHP Group and Rio Tinto were the top boosts to the index after data showed copper and iron ore imports by China, the biggest metals consumer, hit record highs in 2020.

The mid-cap index gained 0.8pc, with travel stocks easyJet and TUI AG being the top boosts.

Holiday company TUI gained 5pc after it said the vaccine roll-out in Britain had boosted summer bookings from those aged 50 and over, with that age group accounting for 50pc of all web bookings since the end of last year.

The FTSE 100 has recorded consistent monthly gains since November, supported by hopes of a vaccine-led economic recovery, but it has recently lost steam as a wave of coronavirus infections sparked new business restrictions.

A boom in Britain's housing market has started to fade, dampened by new COVID-19 lockdowns and the coming expiry of a temporary tax cut for buyers, a survey showed.

Homebuilder Taylor Wimpey jumped 2.5pc after saying its 2020 operating profit would meet market expectations, while Premier Inn-owner Whitbread gained 4.3pc on lower job cuts than earlier expected.

Primark owner AB Foods rose 1.2pc after it said it is confident of strong growth upon reopening, but warned of higher loss of sale if current lockdowns last till March.