London stocks rebound as investors bet on central bank stimulus

  • Reuters
  • Stock Market News
London stocks rebound as investors bet on central bank stimulus
Credit: © Reuters.

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* FTSE 100 up 1.7%, FTSE 250 adds 2%

March 2 (Reuters) - London-listed shares bounced back on Monday as investors hoped of further monetary stimulus from central banks to mitigate the economic impact of the coronavirus epidemic.

The blue-chip FTSE 100 .FTSE gained 1.7%, while the mid-cap index .FTMC was up 2%. Oil majors BP Plc BP.L and Royal Dutch Shell Plc RDSa.L added 4% each, tracking oil prices, and were the biggest boosts to the FTSE 100. O/R

Both benchmark indexes had closed on Friday with their biggest weekly declines since the 2008 financial crisis as the outbreak threatened to blow into a global pandemic and cripple supply chains.

Investors now expect central banks around the world to launch a coordinated effort to cut interest rates and shore up growth. Bets of the U.S. Federal Reserve reducing rates this month stand at 100%, according to CME Group's FedWatch tool.

Miners .FTNMX1770 , airlines .FTNMX5750 and luxury goods makers .FTNMX3760 , which were among the worst hit sectors last week, were up between 1.6% and 2.4%.

Investor attention in Britain will also turn to fresh Brexit negotiations, starting Monday, that aim to hammer out a trade deal by the end of the year to govern everything from aviation to fisheries and student exchanges.

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