Banks, mining stocks lift FTSE 100 to one-week high on stimulus hopes

London's FTSE 100 rose on Tuesday, getting a boost from financial and mining stocks as investors bet on more stimulus measures to soften the economic impact from a second wave of new coronavirus infections. The commodity-heavy FTSE 100 index gained 1.3%, bolstered by banks and energy stocks, while the domestically focussed mid-cap FTSE 250 added 1.2%. Mining stocks climbed 1.9% - tracking higher metal prices.

London's FTSE 100 rose on Tuesday, getting a boost from financial and mining stocks as investors bet on more stimulus measures to soften the economic impact from a second wave of new coronavirus infections. The commodity-heavy FTSE 100 index gained 1.3%, bolstered by banks and energy stocks, while the domestically focussed mid-cap FTSE 250 added 1.2%.

Mining stocks climbed 1.9% - tracking higher metal prices. European shares also tracked a rally in Asia ahead of Election Day in the United States.

The Reserve Bank of Australia trimmed interest rates to near zero on Tuesday and expanded its bond-buying programme, with dealers expecting a similar asset purchase pump by the Bank of England in its policy meeting on Nov. 5 to stem a faltering economic recovery. In company news, Crest Nicholson Holdings Plc jumped 13.2% after the homebuilder forecast annual profit ahead of market expectations and reinstated dividends due to a strong recovery in the housing market.

The wider homebuilding sub-index gained 1.6%.

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