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Stimulus bets lift FTSE 100 after record collapse in output

Published 12/08/2020, 08:14
Updated 12/08/2020, 08:18
© Reuters.
UK100
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ADML
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FTMC
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* FTSE 100 up 0.3%, FTSE 250 flat

Aug 12 (Reuters) - London's FTSE 100 rose on Wednesday as
investors counted on the central bank to further loosen monetary
policy after data showed the economy entered a recession in the
second quarter with a record 20% plunge in output.
The export-laden FTSE 100 .FTSE was up 0.3%, also helped
by a weaker pound, while the mid-cap FTSE 250 .FTMC hovered at
two-month highs.
The UK's GDP figures showed the sharpest contraction among
the world's biggest economies, but there were signs of a
recovery in June following the easing of coronavirus-driven
lockdowns. A day before the data was released, Bank of England Deputy
Governor Dave Ramsden said the central bank would step up
quantitative easing if the economy slowed again and that he was
"confident" there would be no further quarters of negative
growth. Insurer Admiral ADML.L jumped 5% to the top of the FTSE
100 after reinstating its special dividend and posting higher
first-half profit.

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