FTSE clings on to early increase
The FTSE 100 held on to its gains from early trading to close higher, as buoyant housing stocks helped to offset pandemic-related concerns.
Housing firms saw their shares strengthen following reports that the UK government is to extend the timeframe of the Help to Buy scheme as construction work was affected by the pandemic, pushing the likes of Taylor Wimpey and Berkeley higher.
Markets elsewhere in Europe were inconsistent as fears over second waves, and wrangling over a US stimulus deal, weighed on sentiment.
London’s top flight closed 24.38 points higher at 6,129.26. Connor Campbell, financial analyst at Spreadex, said: “The FTSE desperately clung on to an increase despite gains for the pound and a wave of red across its mining stocks.
“The UK index’s white knight was the housing sector, which rallied on the back of news the government may extend the Help to Buy scheme beyond December.”
Sterling moved to its highest level against the dollar since early March as traders welcomed positive retail statistics from the CBI.
The pound rose 0.5 per cent versus the US dollar at $1.294 and was up 0.67 per cent against the euro at €1.103.
In company news, British Airways owner IAG moved higher despite a major trade union warning it will move towards industrial action “with immediate effect”.
Len Mccluskey, general secretary of Unite, claimed the UK airline has published a timetable to “fire and rehire” thousands of workers on 7 August. Shares in the group nevertheless closed 2.95p higher at 189.9p.
Reckitt Benckiser closed higher after it said it expects Covid-19 will permanently increase sales of Dettol and other cleaning products as it looks forward to a better-thanexpected 2020.
The consumer goods giant said sales in its health business, which includes Dettol, increased by 9.3 per cent in the first half of the financial year. Shares closed 80p higher at 7,800p as a result.
High-street bakery chain Greggs saw its shares end the day 90p lower at 1,369p after it said it only sold around 72 per cent of the pasties, drinks and sandwiches it did in the same period last year.