London shares bounce on stimulus, recovery hopes; Barratt jumps

The company rose 4.8% to the top of the FTSE 100 as it said it was starting the new financial year with "cautious optimism" after the COVID-19 pandemic halted construction activity and hit deliveries. The export-laden FTSE 100 was up 1.9% and the mid-cap FTSE 250 1.5%, joining in an Asian rally that was powered by a surge in China's blue chip stocks even as soaring U.S. coronavirus cases delayed reopenings.

London-listed shares jumped more than 1% on Monday as hopes of more stimulus to kickstart a battered global economy bolstered risk appetite, while homebuilder Barratt surged after reporting a stronger order book value. The company rose 4.8% to the top of the FTSE 100 as it said it was starting the new financial year with "cautious optimism" after the COVID-19 pandemic halted construction activity and hit deliveries.

The export-laden FTSE 100 was up 1.9% and the mid-cap FTSE 250 1.5%, joining in an Asian rally that was powered by a surge in China's blue chip stocks even as soaring U.S. coronavirus cases delayed reopenings. Auto stocks rose 1.1% as data showed the pace of declines in new car sales in the UK slowed in June as many dealerships reopened from a COVID-19 lockdown.

Banks, construction stocks and life insurers were also among the early advancers.