U.K. stocks boosted by China stimulus efforts

U.K. stocks boosted by China stimulus efforts

British stocks edged higher on Monday, with companies sensitive to Chinese demand getting a boost from the country’s efforts to limit the economic fallout from the deadly coronavirus.

The FTSE 100 UKX, +0.33% rose 0.3% to 7430.20, helped by gains by HSBC Holdings HSBA, +1.06%, which rose 1.2%; oil giant BP BP, +0.91%, which rose 1.6%; and miner BHP Group BHP, +0.98%, which rose 1.5%.

China took another step to boost its economy, with the People’s Bank of China cutting its one-year lending rate, as the finance minister said the country is planning targeted tax cuts.

Trading was light, with U.S. markets closed for the Presidents Day holiday.

Jupiter Fund Management JUP, +3.66% climbed nearly 4% after reaching a deal to buy another fund management group which has had declining outflows. It will acquire Merian Global Investors for £370 million in stock as well as another potential £20 million depending on performance. Merian managed £22.4 billion as of Dec. 31, generating management fees of £140 million per year. Jupiter said the deal will add to earnings by a low to mid-teen percentage from 2021.

Tullow Oil TLW, -2.70% slumped 4% after announcing it was abandoning a well offshore of Peru. Tullow said it was still positive about Peru’s wider offshore potential.

Share:
Scroll Up
error: Content is protected !!