LONDON, Nov 5 — London stocks rose today after the Bank of England extended a stimulus programme to cushion Britain’s struggling economy as England goes into a second national lockdown. The blue-chip FTSE 100 index inched 0.2 per cent higher, boosted by stocks of industrials and retailers, but a stronger pound and declines in oil majors BP and Royal Dutch Shell on lower crude prices, limited gains.

The domestically focused mid-cap FTSE 250 gained 0.2 per cent, with shares in rail and coach ticketing company Trainline Plc jumping 5.0 per cent as JP Morgan upgraded the stock to "overweight” after first-half results.

The BoE ramped up its already huge asset purchase programme by a further £150 billion (RM810 billion) and said it expects Britain’s economy to shrink by 11 per cent in 2020, more severe than the 9.5 per cent contraction it had forecast in August.

"An extraordinary economic shock warrants an extraordinary policy response. Today’s announcement (by BoE) shows once again that the Bank is committed to supporting the government in its economic response to the pandemic,” said Ambrose Crofton, global market strategist at J.P. Morgan Asset Management.

Finance minister Rishi Sunak is set to speak later in the day, with a report saying the government will extend its pandemic bailout schemes even after the lockdown ends on December 2.

"A reintroduction of a furlough scheme will be much more important in dealing with the impact of the new lockdown measures in the short term,” said Neil Birrell, chief investment officer, Premier Miton Investors.

Focus was also on the US presidential election race, with Democratic contender Joe Biden moving closer to victory, while incumbent President Donald Trump mounted legal challenges as election officials tallied votes in the handful of states that will determine the outcome.

Auto distributor Inchcape Plc jumped four per cent, after a beat-and-raise quarter, while Anglo American Plc fell three per cent after the miner cut its annual metal production outlook. — Reuters