(For a Reuters live blog on U.S., UK and European stock
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* UK finance minister announces 4.6 bln pound stimulus
* Energy stocks track oil prices higher
* Fashion retailer Next gains on better-than-expected sales
* FTSE 100 up 0.6%, FTSE 250 adds 0.9%
(Updates to market close, adds analyst comments)
By Shashank Nayar and Shivani Kumaresan
Jan 5 (Reuters) - British shares closed up on Tuesday, as
fresh stimulus measures overshadowed risks arising from a new
national lockdown imposed to curb the spread of a new
coronavirus variant, while energy stocks jumped on higher oil
prices.
The benchmark FTSE 100 index gained 0.6%, with
energy stocks gaining 7%. Oil heavyweights BP
and Royal Dutch Shell were the biggest boosts to
the blue-chip index.
Britain began its third COVID-19 lockdown on Tuesday with
citizens under orders to stay at home and the government calling
for one last major national effort to stem the spread of the
virus before mass vaccinations turn the tide.
"Based on the market behaviour yesterday and today, I think
there is a willingness to look through the economic implications
of this current lockdown because it could be the last one," said
Connor Campbell, a financial analyst at Spreadex.
Britain on Tuesday announced a new 4.6 billion pound ($6.2
billion) support package, under which retail, hospitality and
leisure companies will be able to claim new one-off grants worth
up to 9,000 pounds.
The blue-chip index currently trades at levels seen in early
March last year when the coronavirus crisis had just begun to
roil markets globally, but has gained nearly 33% from its record
2020 lows as the economy showed signs of improvement led by huge
government stimulus packages.
The mid-cap index was up 0.9%.
December was the busiest month ever for British supermarkets
as tightening COVID-19 curbs and the closure of restaurants,
bars and cafés meant shoppers spent 11.7 billion pounds ($15.9
billion) on groceries, industry data showed.
Morrisons, Britain's fourth-largest supermarket
group, reversed early gains to fall 0.7% even after reporting a
rise in underlying sales in its latest trading period
encompassing Christmas.
British fashion retailer Next jumped 8% after
beating its Christmas sales forecast.
(Reporting by Shashank Nayar and Shivani Kumaresan in
Bengaluru; editing by Uttaresh.V, Shailesh Kuber and Emelia
Sithole-Matarise)
Next (NXT)
BP (BP.)
