(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* FTSE 100 up 4.5%, FTSE 250 gains 4.5%
* Travel food co SSP soars after launching huge cash call
* UK posts biggest rise yet in virus deaths, cases
* Pest control firm Rentokil slides after pulling 2020
forecast
(Updates with closing price)
By Sruthi Shankar and Devik Jain
March 25 (Reuters) - London shares extended gains for a
second session on Wednesday as an imminent U.S. stimulus package
and moves by companies to deal with the financial effects of the
coronavirus crisis offset the impact on markets of a surge in
cases domestically.
The FTSE 100 closed up 4.5% following its biggest
percentage gain on Tuesday since the wild swings of the 2008
financial crisis.
That aided a 16% recovery from the lows hit last week as
investors pinned hopes on massive steps by central banks and
governments to cushion the economic impact of the pandemic.
U.S. senators are set to vote on a $2 trillion package of
legislation, expected to include a $500 billion fund to help
hard-hit industries and a comparable amount for direct payments
of up to $3,000 apiece to millions of U.S. families.
"What the European, British or the U.S. governments have
done in terms of stimulating the economy has helped, but I don't
think we're out of rough times" said Simon Calton, chief
executive officer at Carlton James in London.
Volatility was still in play, driving the blue-chip FTSE
index down 0.8% in late morning trading. It recovered as oil
companies and other recently battered stocks surged.
The health crisis continued to deepen, with Britain seeing
its biggest daily jump in the death toll from coronavirus on
Tuesday. Prince Charles, the 71-year-old heir to the British
throne, tested positive for the virus.
Businesses listed more damage, with housebuilder Persimmon
Plc and retirement home developer McCarthy & Stone
starting an orderly shutdown of their construction
sites.
Pest control company Rentokil Initial Plc dropped
8.2% as it withdrew its 2020 outlook and suspended dividend
payments even as it saw a surge in demand for its specialist
hygiene and disinfection services.
British travel-food company SSP, however, rose 23%
after launching an emergency issue of shares worth 20% of its
equity capital as it laid off staff and cut spending.
SSP and student housing operator Unite Group were
among companies that emerged as likely candidates for the
government's emergency lending scheme, aimed at helping tide
companies over the coronavirus shutdown.
Bicycles and car products retailer Halfords surged
26% after saying it was confident that it could operate within
its debt facilities, although it warned of a 25% drop in sales
and suspended its dividend.
Companies listed on the pan-European STOXX 600 are
now expected to report a 14.9% decline in earnings in the second
quarter, down from an 8.2% drop forecast a week earlier.
(Reporting by Sruthi Shankar and Devik Jain in Bengaluru;
editing by Patrick Graham, Anil D'Silva and Catherine Evans)
Unite (UTG)
Halfords (HFD)
Persimmon (PSN)
Rentokil Initial (RTO)
