UPDATE 1-British stocks rise on fresh stimulus hopes, GSK boost
*FTSE 100 up 0.6%, FTSE 250 adds 0.8%. Sept 3- London shares rose on Thursday as upbeat services sector data from China and bets on more stimulus lifted risk appetite, while GlaxoSmithKline rose on announcing a clinical trial for a COVID-19 vaccine candidate. The bue-chip FTSE 100 added 0.8%, climbing for a second straight session, with life insurers and travel…
* GSK rises after announcing potential COVID-19 vaccine
* BoE Deputy Governor Ramsden hints of more stimulus
* FTSE 100 up 0.6%, FTSE 250 adds 0.8%(Updates prices throughout, adds comments)
By Shashank Nayar
Sept 3 (Reuters) – London shares rose on Thursday as upbeatservices sector data from China and bets on more stimulus liftedrisk appetite, while GlaxoSmithKline rose on announcing aclinical trial for a COVID-19 vaccine candidate.
GSK rose 1% after the drugmaker along with Frenchdrugmaker Sanofi said that they had started the “Phase1/2” trial for their vaccine.
The bue-chip FTSE 100 added 0.8%, climbing for asecond straight session, with life insurers andtravel stocks leading gains, while the mid-capindex advanced 0.6%.
“London markets are rushing on hopes that the governmentwill have to consider further rounds of stimulus measures giventhe current economic situation, in addition to some positivityarising out of France’s stimulus measures,” said ConnorCampbell, analyst at Spreadex.
Trillions of dollars in stimulus and signs of a pickup inbusiness activity have lifted the FTSE 100 from its March lows,but the index is still down about 22% from its pre-pandemichighs as the domestic economy struggles to post steady growth.
Bank of England Deputy Governor Dave Ramsden on Wednesdayhinted at more liquidity as he warned of higher risks toBritain’s economy from the coronavirus crisis than spelt out bythe central bank last month.
Britain’s services PMI showed job losses accelerated inAugust despite an upturn in demand, in a bleak sign ahead of theclosure of the government’s coronavirus furlough scheme at theend of next month.
China service sector activity extended into a fourthstraight month in August, with companies hiring more people forthe first time since January.
Turnaround specialist Melrose Industries Plc fell10.0% after its adjusted operating profit plunged 90% in thefirst half, hurt by a coronavirus-driven downturn in theaerospace and automotive sectors.
North Sea focused oil producer Enquest tumbled 11.3%after it said its free cash flow of $87.5 million, generated inthe first six months of 2020, was about 37% lower from lastyear.(Reporting by Shashank Nayar in Bengaluru; Editing bySubhranshu Sahu and Shailesh Kuber)
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