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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
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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.