This post was originally published on this site
Signage outside the entrance of the London Stock Exchange in England.
peter nicholls/Reuters
The top U.K. benchmark index rallied on Tuesday, with signs of a slowing coronavirus spread in the U.S. as well as hopes for new stimulus propelling British equities higher.
The FTSE 100 UKX, +2.09% rose 2%, its best single-day gain since Aug. 3 and second-best gain since July 6.
The coronavirus picture in the U.S. seems to be improving. According to The New York Times tracker, new cases have fallen 18% over the last 14 days and new deaths have dropped 6%.
At the same time, there are still hopes for a U.S. stimulus package even after President Donald Trump signed executive orders meant to skirt Congressional negotiations. Trump also mentioned the desire for a capital-gains tax cut at his Monday press briefing, which in theory could be achieved through an order to index capital gains.
The rally was broad based, with oil majors Royal Dutch Shell RDSA, +4.54% and BP BP, +4.41% continuing their gains this week, while silver and gold producers Fresnillo FRES, -5.45% and Polymetal International POLY, -4.14% trailed as gold and silver prices weakened.
GVC Holdings GVC, +8.93% was the top FTSE-100 riser, as broker Peel Hunt said Thursday’s results may show a bounceback in demand for sports betting, the retention of customers acquired during lockdown, and the development of smaller markets such as Australia and Georgia.
Outside the FTSE 100, Plus500 PLUS, +8.06% climbed over 8% as the London-listed, Israeli trading company said its first-half profit and revenue surged. It reported client deposits of $1.65 billion, up 254%.
