UPDATE 1-London stocks jump after BoE's emergency rate cut

Published 2020/03/11, 10:21
Updated 2020/03/11, 10:24
© Reuters.

(Updates to market open)

March 11 (Reuters) - London stocks jumped on Wednesday, following a four-day slump, after the Bank of England unexpectedly cut interest rates to shield the economy from the impact of the coronavirus outbreak.

The FTSE 100 .FTSE gained 1.6% and was on course for its best day since mid-December, after the central bank cut rates by 50 basis points to 0.25%. move came ahead of the unveiling of the first budget of Prime Minister Boris Johnson's government at 1230 GMT. Finance Minister Rishi Sunak is expected to pledge billions of pounds to fight the fall-out from the coronavirus on Wednesday. in major UK banks, including Lloyds LLOY.L , RBS RBS.L and Barclays BARC.L , rose between 1% and 2% after the British central bank said lenders can tap one of their capital buffers to maintain lending during the coronavirus epidemic.

The domestically focussed midcap .FTMC index added 1.2%, led by gains in Balfour Beatty BALF.L , Hunting HTG.L and SIG Plc SHI.L , all of which rose between 4% and 7%.

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