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UPDATE 2-Recovery optimism buoys London stocks; energy firm SSE jumps

Published 17-06-2020, 01:51 pm
© Reuters.
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(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* SSE hits three-month high on upbeat annual profit

* DIY group Kingfisher jumps after posting higher sales

* Online fashion group Boohoo surges on rosy forecast

* UK's Domino's Pizza slumps after weak outlook

* FTSE 100 up 0.2%, FTSE 250 adds 0.7% (Adds comment, updates to close)

By Susan Mathew

June 17 (Reuters) - London's FTSE 100 rose for a second straight day on Wednesday as a series of upbeat corporate earnings bolstered hopes of an economic recovery, but the index ended with a fraction of the session's gains as fears of a second wave of COVID-19 persisted.

The blue-chip index .FTSE gained as much as 1.1% during the session but as Wall Street struggled to hold gains amid rising numbers of cases in the United States, the FTSE pared gains to close up 0.2%. .N

Declining oil prices weighed on energy stocks .FTNMX0530 , while banks .FTNMX8350 and insurers .FTNMX8570 also fell. O/R

"The more intensive outbreak in the second wave seems to have the market a little bit nervous at the moment," said Michael Baker, analyst at ETX Capital. "We are seeing a lot of reactive trading rather than people positioning themselves for the longer term."

Topping the FTSE 100, renewable power generator SSE Plc SSE.L surged 8.8% to its highest in three months after beating annual profit estimates. the mid-cap FTSE 250 .FTMC 0.7% higher, home improvement group Kingfisher KGF.L climbed 6.4% on reporting a jump in quarterly underlying sales. fashion group Boohoo BOOH.L surged 5.5% as it forecast annual results ahead of market expectations. sort of upswings in the market are going to be based on earnings performance of companies because a majority of the macro-related developments are already factored in," said Andrea Cicione, head of strategy at TS Lombard.

UK stock markets have rebounded sharply from a coronavirus-driven crash in March, with the FTSE 100 up about 27% since then, as investors bet on more global stimulus and an easing of lockdowns to revive business activity.

Data on Wednesday showed British inflation hit a four-year low in May, leaving the Bank of England free to ramp up its stimulus programme again. Pizza Group DOM.L slumped 6% after saying its first-half core earnings would be hit by additional costs. BooHoo vs M&S

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