Aug 12 – London’s FTSE 100 rose on Wednesday as investors counted on the central bank to further loosen monetary policy after data showed the economy entered a recession in the second quarter with a record 20% plunge in output.
The export-laden FTSE 100 was up 0.3%, also helped by a weaker pound, while the mid-cap FTSE 250 hovered at two-month highs.
The UK’s GDP figures showed the sharpest contraction among the world’s biggest economies, but there were signs of a recovery in June following the easing of coronavirus-driven lockdowns.
A day before the data was released, Bank of England Deputy Governor Dave Ramsden said the central bank would step up quantitative easing if the economy slowed again and that he was “confident” there would be no further quarters of negative growth.
Insurer Admiral jumped 5% to the top of the FTSE 100 after reinstating its special dividend and posting higher first-half profit. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Subhranshu Sahu)