London stocks rise on optimism around virus drug, upbeat earnings

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

(Reuters) – UK stock markets rose on Thursday as investors cheered signs of progress in developing a treatment for the novel coronavirus, while Reckitt Benckiser surged after reporting strong demand for its products ahead of the lockdown.

The consumer goods firm (RB.L) said sales of its Lysol disinfectants, Mucinex cough syrup and Dettol soap had jumped in the first quarter and that it now expected performance in 2020 to be better than initially forecast. Its shares rose 3.2%, pushing up the household goods index .FTNMX3720 2.3%. [nXXN2CH004]

The blue-chip FTSE 100 .FTSE rose 0.3%, climbing for the fourth straight session and on track to post its biggest monthly gain since 2011, with investors betting on a recovery in business activity as economies start emerging from shutdowns imposed to contain the coronavirus.

The domestically focussed mid-cap index .FTMC added 0.6%.

Positive partial results from a trial of U.S.-based Gilead Sciences Inc’s (GILD.O) remdesivir in speeding up recovery from the disease also added to global optimism on Thursday. [MKTS/GLOB]

On the other hand, Royal Dutch Shell (RDSa.L) fell 2.8% as it cut its dividend for the first time in 80 years and suspended the next tranche of its stock buyback programme. [nL8N2CI2G2]

Reporting by Sagarika Jaisinghani in Bengaluru

Source Article

Next Post

Factbox: German companies seek state aid to cope with coronavirus

(Reuters) – A number of German companies have taken out government-guaranteed loans as part of the federal government’s aid package to deal with the coronavirus crisis. FILE PHOTO: Thyssenkrupp’s logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle Here is a list of […]