(Alliance News) - Stocks in London ended higher on Friday, with the mood lifted by a new jobs support package announced by UK Chancellor Rishi Sunak.
The large cap FTSE 100 index closed up 38.62 points, or 0.7%, at 6,016.65. The blue-chip index ended the week up 2.4%.
The FTSE 250 ended up 0.7% at 18,074.42, and the AIM All-Share closed up 1.2% at 990.01.
The Cboe UK 100 ended up 0.5% at 598.54, the Cboe UK 250 closed up 0.7% at 15,343.88, and the Cboe Small Companies ended up 0.1% at 9,511.85.
In European equities on Friday, the CAC 40 in Paris and the DAX 30 in Frankfurt ended up 0.7% and 0.1% higher, respectively.
"European equity benchmarks are in positive territory as we approach the close of the trading session," said CMC Markets UK analyst David Madden.
"The FTSE 100 hit a three-week-high, and mining, pharma and energy stocks have been the biggest gainers in terms of index points," added Madden.
The UK government will pay two thirds of the wages of staff in pubs, restaurants and other businesses if they are forced to close under new coronavirus restrictions, the chancellor has announced.
Sunak said the expansion of the Jobs Support Scheme would protect jobs and provide "reassurance and a safety net" for people and businesses across the UK in advance of a potentially "difficult winter".
It comes as ministers are expected to outline a three-tier local lockdown system on Monday, which could see hospitality venues in coronavirus hotspots being temporarily closed to combat the spread of the virus.
Firms whose premises are legally required to close because of restrictions will receive grants to pay the wages of staff who cannot work, with the government paying two thirds of each employee's salary up to a maximum of GBP2,100 a month.
Employers will not be required to contribute towards wages, but will be asked to cover national insurance and pension contributions.
The pound was quoted at USD1.3010 at the London equities close Friday, firm compared to USD1.2932 at the close on Thursday.
The euro stood at USD1.1821 at the European equities close Friday, higher from USD1.1753 at the same time on Thursday. Against the yen, the dollar was trading at JPY105.68 compared to JPY105.99 late Thursday.
The UK economy grew less than expected in August despite the government's 'Eat Out to Help Out' scheme lifting the services sector, according to figures from the National Office for Statistics on Friday.
Gross domestic product grew 2.1% month-on-month in August, slower than the 6.4% seen in July. The economy remains 9.2% below the levels seen in February, before the Covid-19 pandemic battered activity.
Consensus, according to FXStreet, had seen growth of 4.6% in August.
In August, the index of services grew 2.4% month-on-month, production rose 0.3% and manufacturing increased 0.7%. Construction advanced 3.0%.
In the three months to August, the economy grew 8.0% on a sequential basis.
On the London Stock Exchange, British Land closed up 3.0%, thanks to its plans to resume dividend payments.
The FTSE 100-listed London-based real estate investment trust temporarily suspended its dividend in March given the "unprecedented circumstances" of the Covid-19 pandemic.
"Like many businesses, we continue to face challenges as a result of the Covid-19 pandemic, but we also recognise the importance of the dividend to shareholders. We benefit from the strong financial position we have established over several years, a unique and world-class portfolio of real estate and are reassured by the improving operational performance of our assets over recent months," said British Land.
Consequently, it will be resuming dividends, paid semi-annually rather than quarterly. Future dividends are to be paid at 80% of British Land's underlying earnings per share.
A dividend will be declared on this basis along with its results in November.
Among the mid-caps, G4S closed 5.3% higher after saying that it has been approached by US security and facility services company Allied Universal Security Services in relation to a takeover offer.
The security services provider is currently the target of a hostile takeover attempt from Montreal-based Garda World Security.
G4S stated that while there is no certainty that an offer will be made by Allied Universal, nor its terms, it advises shareholders to reject GardaWorld's "unattractive and highly opportunistic offer" of 190 pence per share which "significantly undervalues G4S and its prospects".
Petropavlovsk was on the other side of the index, closing down 4.0%, after saying it expects full year production to be below its previous guidance but assured that the impact on profitability will be less significant given the lower margins on third-party production processing.
The Russian gold miner said it expects total production of between 560,000 to 600,000 ounces, down from previous forecasts of between 620,000 to 720,000 ounces, blaming the underperformance on lower than expected grades - primarily from third-party material - and logistical issues associated with Covid-19 impacting deliveries of third-party concentrates.
In Friday's corporate calendar, there are trading statements from XP Power, Network International Holdings, and Scapa Group, while e-Therapeutics will report its half-year results.
Stocks in New York were in the green at the London equities close, with the Dow Jones Industrial Average and the S&P 500 index up 0.8% and 0.9%, respectively, and the Nasdaq Composite up 1.1%.
The US on Friday imposed steep new tariffs on nearly USD2 billion in aluminium from 18 countries the Commerce Department accuses of dumping into the American market, including Germany, Spain and Brazil.
US Commerce Secretary Wilbur Ross said China was not on the list but is partially responsible for the flood of aluminium sheet imports that could undermine domestic producers.
Germany and Brazil face the steepest tariffs of close to 353% and 137%, respectively. The US imported nearly USD287 million of the product from Germany last year, and USD97 million from Brazil.
The department could overturn the decision in late February, which is also subject to review by the US International Trade Commission. Their final decision is scheduled for April 5, 2021.
Brent oil was quoted at USD43.32 a barrel at the London equities close Friday, up from USD42.80 late Thursday.
Elsewhere in the commodity space, gold was quoted at USD1,924.20 an ounce at the London equities close Friday, higher against USD1,889.10 at the close on Thursday.
In the economic calendar on Monday, ECB President Christine Lagarde is scheduled to speak at a Governor Talk virtual meeting at 1200 BST.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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