London stocks bounce back from biggest slump since 2015

London-listed stocks rebounded on Tuesday after slumping to a four-month low in the previous session, as a rapid increase in coronavirus cases outside China raised hopes of further monetary stimulus to limit the damage to the global economy. The blue-chip FTSE 100 gained 0.4%, a day after logging its worst day since 2015 on a surge in virus cases in South Korea, Iran and Italy. Fears of a pandemic had wiped $1.5 trillion off global equity markets on Monday.

The White House has sought about $2.5 billion to fight the deadly virus, with more than $1 billion earmarked for developing a vaccine. The domestically focussed mid-cap index added 0.5%, led by gains in Tullow Oil and Vivo Energy.

Insurer Prudential Plc rose 2.9% after hedge fund Third Point amassed a stake of over $2 billion and called on the company to split into two. The stock was the biggest gainer on the FTSE 100.

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