London stocks track Asia higher on U.S. stimulus hopes

London stocks tracked Asian markets higher on Thursday as hopes for fresh U.S. stimulus measures bolstered global investor sentiment, although risks of a new round of lockdowns due to rising COVID-19 cases in the UK kept gains in check.

London stocks tracked Asian markets higher on Thursday as hopes for fresh U.S. stimulus measures bolstered global investor sentiment, although risks of a new round of lockdowns due to rising COVID-19 cases in the UK kept gains in check. Markets globally held steady after the Trump administration on Wednesday proposed stimulus measures worth $1.5 trillion, including a $20 billion aid for the airline industry.

The blue-chip FTSE 100 index climbed 0.9% with insurance and banking stocks leading gains, while the mid-cap index rose 0.4%. Aero-engine maker Rolls-Royce dropped 4.7% after it said it planned to raise 2 billion pounds ($2.6 billion) from shareholders, 1 billion pounds from the bond market and secure further loans to rebuild its balance sheet after the pandemic.

Retailer Halfords jumped 10.3% after it raised its first-half profit outlook as it continued to benefit from a cycling boom during the pandemic.