Covid-19 ‘slowdown’ sparks more top-flight gains

LONDON’S top flight enjoyed another session of gains as global markets rallied on mounting hopes of a slowdown in the spread of the coronavirus outbreak.

Investors took heart from evidence the number of new cases of the newly-named Covid-19 virus fell overnight in China to its lowest this month, despite no sign of a breakthrough in a treatment.

The FTSE 100 Index closed 34.93 points higher at 7,534.37, but it was an even rosier picture across Europe and on Wall Street.

In Germany, the Dax jumped to an all-time high of 13,749.78 after finishing 0.9 per cent higher, while the Cac 40 in France also came close to setting new records and ended the session up 0.8%.

In America, the Dow Jones Industrial Average was testing record highs as it surged more than 200 points at the time of close in London.

In currency news, the pound was 0.4% higher against a weakened euro after some disappointing economic data from the EU hit the single currency.

Sterling stood at 1.19 euros, while it was 0.2% higher at 1.298 US dollars.

Back in the FTSE 100, it was a strong session for commodities thanks to rising oil prices, which pushed BP and Royal Dutch Shell higher.

The cost of crude lifted, with Brent up more than 3% on a growing sense of optimism surrounding the Covid-19 outbreak and the impact on China’s economic growth and global demand for oil.

BP was also in the spotlight as new boss Bernard Looney promised to fundamentally “reinvent” the oil giant and pledged the company would become carbon neutral by the middle of the century, aiming to get to net-zero by 2050 – the same target adopted by the UK Government last year.

With a helping hand from higher Brent crude prices, BP ended the day up 1% or 4.9p at 474.6p.

Rival Shell lifted 2% or 33.6p to 2021p.

Miners also littered the risers’ board, led by Anglo American and Antofagasta, ahead 101p to 2153.5p and 34.4p to 880p respectively.

Dunelm saw shares surge 9% as it hiked its annual profit outlook. It posted a 19.4% boost in pre-tax profits for the six months to December 28 to £84.9 million thanks to a 6% sales rise and bosses said they expect full-year profits to beat analysts’ expectations.

Shares in the group closed 105p higher at 1,306p.

The biggest FTSE risers were

NMC Health, up 76p at 854.2p, Anglo American, ahead 101p to 2153.5p, Antofagasta, 34.4p higher at 880p, and Barratt Developments, 29.8p stronger at 856.4p.

The biggest FTSE fallers were Tui, down 42.2p at 925.6p, Ocado, off 45p at 1209.5p, Imperial Brands, 39.8p lower at 1839p, and

Polymetal International, 23p weaker at 1,271p.