London Markets: Resource stocks lead the gains in London, while some hospitality names gain on prospects of COVID aid

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London stocks rebounded from what was the worst session since the emergence of the omicron variant last month, driven by gains for resource stocks and some help from hospitality names after the U.K. government announced an aid plan.

The FTSE 100

rose 1% to 7,276, following a near 1% drop on Monday, which was in step with a global market selloff. The pound

rose 0.1% against the dollar at $1.3235.

Shares of Wagamama owner The Restaurant Group

surged 5%, while pub chain J D Wetherspoon

climbed 2.9%, while brewer Mitchells & Butlers

rose 2%.

Read: European gas futures surge at least 15% as Russia blamed for withholding gas deliveries

Those gains came after the U.K. offered grants worth 1 billion pounds ($1.3 billion) to help the hospitality industry confront the omicron variant of COVID-19. Local governments will get an extra 100 million pounds to support businesses.

While COVID-19 cases in the U.K. and elsewhere, markets were driven by some optimism after the administration of President Joe Biden announced measures to combat the virus, such as 500 million free rapid tests to be distributed to Americans.

Resource stocks rose on a reversal of Monday’s losses, with a 2% gain in U.S.

and Brent oil prices

driving up energy names, such as heavily weighted BP


and Royal Dutch Shell


by more than 2% each.

Mining stocks also helped prop up the main index, with shares of Glencore

and Rio Tinto


up more than 3% each.

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