* FTSE 100 rises 1.5%, FTSE 250 0.3%
* Consumer staples lead gains
* Airlines lag broader rally as virus fears hit travel demand
* Mall operator Intu hits record low (Adds FTSE close, news items)
By Devik Jain and Noor Zainab Hussain
March 4 (Reuters) - London's blue chip index completed a hat-trick on Wednesday, as investors bet on possible rate cuts in Europe after the U.S. Federal Reserve's emergency move to protect the U.S. economy from the impact of the coronavirus on Tuesday.
The FTSE 100 index rose as miners and other export-heavy firms were also boosted by a dip in sterling.
The index .FTSE closed the session 1.5% higher, led by gains for consumer staples including Reckitt Benckiser RB.L , Morrison MRW.L and Imperial Brands IMB.L . The domestically focussed mid-cap index .FTMC was 0.3% higher.
Luxury goods makers .FTNMX3760 recovered after being hit hard last month by fears of widespread disruption to supply chains as the virus spread rapidly outside China.
"Even a consideration that maybe the glass is not empty but more akin to being half-full boosts risk assets such as the equity markets which - on a yield basis - look highly attractive versus investment alternatives," Chris Bailey, European Strategist at Raymond (NS: RYMD ) James, said.
Chinese factory and services activity contracted sharply in February, and central banks around the world are scrambling to come up with ways to contain the hit to growth.
In its first such move since the global financial crisis in 2008, the U.S. Federal Reserve unexpectedly lowered borrowing costs by 50 basis points on Tuesday, setting the stage for its European peers to follow suit. positive move has been influenced by speculation that we might see interest rate cuts from the Bank of England as well as the European Central Bank in the near-term," CMC (NS: CMC ) Markets analyst David Madden said.
"In light of the Fed's emergency rate cut yesterday, the chatter about other central banks cutting too is likely to do the rounds for a while," he said.
Airline stocks including British Airways-owner IAG ICAG.L fell as the virus continued to spread in over 80 countries. wider travel and leisure sub-sector .FTNMX5750 has now fallen in eight of the past nine sessions.
Among individual stocks, shopping centre owner Intu INTUP.L slumped 40.9% to a record low as it scrapped a planned equity raise and said there was a risk that it might breach some of its debt covenants this year. maker Devro DVO.L gained 8.2% after saying its China manufacturing plant was operating at normal capacity and had not faced labour or supply shortages due to the health crisis.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.