The FTSE 100 rose 0.3% after the bell on Monday amid news that the US stimulus bill might be possible.
Despite the small rise, increases in the blue-chip index remained muted fears of new Coronavirus restrictions and Brexit concerns.
The FTSE 100 had slower growth as the pound shot 0.3% higher against the dollar and 0.4% against the euro after Michael Gove claimed that the door is still ‘ajar’ for a post-Brexit trade agreement between the UK and EU.
Investors were positive over the news that Nancy Pelosi, speaker of the US House of Representatives, setting a 48-hour deadline for a bi-partisan stimulus deal to be agreed upon if a package is to be put in place before the election.
Stocks in Ocado and Next helped bolster the FTSE on Monday’s opening. Shares in property groups including British Land, Land Securities and Rightmove also rose, thanks to the continued boom in the housing market.
In China, stocks were also higher as new figures showed the economy to have grown by 4.9% between July and September.
It is the second consecutive quarter of growth and whilst it is lower than analyst expectations of 5.2%, the figures suggest economic recovery from the pandemic.
Connor Campbell, financial analyst at Spreadex, commented: “The Chinese economy grew by 4.9% in the third quarter, well up from Q2’s 3.2% increase, and Q1’s 6.8% contraction. And though that was notably below the 5.5% forecast, any ill-feeling was tempered by improving industrial production and unemployment rate numbers, and, crucially, a far better than expected retail sales reading.
“That metric – which, after the GDP figure, is the most important for investors – surged from 0.5% in August to 3.3% in September, marking the 2nd positive reading in a row.”