UK shares edge higher; tracking worst quarter since 1987

UK shares moved higher on Tuesday as stable oil prices and positive factory data out of China were encouraging even though the blue-chip FTSE 100 was set for its worst quarter since 1987. The index rose 1.8% by 0816 GMT, with turnaround specialist Melrose Industries surging 14.4% after saying it was reducing its expenses, with senior staff across many of its businesses taking a temporary 20% pay cut in an effort to ride out the health crisis.

The domestically focused midcap index rose 1.9%, but was on course to log its worst quarterly loss ever. Oil prices steadied after hitting 18-year lows as U.S. President Donald Trump and Russian President Vladimir Putin agreed to talks to stabilise energy markets, helping oil companies Royal Dutch Shell and BP gain more than 2%.

While there were concerns about a sustained recovery, factory activity in China unexpectedly expanded in March from a collapse the month before. Luxury carmaker Aston Martin fell 8.9% after saying it is furloughing some employees as it handles the fallout from the coronavirus outbreak, which has closed its car factories.

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