(Sharecast News) - London stocks edged higher in early trade on Thursday as investors bet that Democrat Joe Biden will win the US election, and after the Bank of England announced a bigger-than-expected boost to its bond-buying programme.
At 0845 GMT, the FTSE 100 was up 0.4% at 5,903.66.

The BoE kept interest rates on hold at a record low of 0.1%, as expected, but boosted its bond-buying programme as it warned of a double-dip recession, just as England heads into its second national lockdown.

The Bank said it will inject an extra £150bn into the economy - taking the total to £875bn - as it cautioned the lockdown will shrink the economy in the current quarter, leading to a double-dip recession. All nine policymakers voted unanimously to keep rates on hold and boost quantitative easing. Analysts had been expecting a £100bn increase to QE.

"Announcing further asset purchases now should support the economy and help to ensure the unavoidable near-term slowdown in activity was not amplified by a tightening in monetary conditions that could slow the return of inflation to the target," the Bank said.

The BoE also warned that unemployment will rise to 7.75% next year, while the UK economy won't return to pre-pandemic levels until the first quarter of 2022.

Ruth Gregory, senior UK economist at Capital Economics, said this was unlikely to be the last expansion of QE.

"We were virtually the only forecaster to predict back in June that the Bank would loosen monetary policy further at its November meeting. By announcing an extra £150bn today, the MPC didn't disappoint as that was slightly greater than our forecast of £100bn.

"And this extra QE is unlikely to be the last expansion. We think the MPC will announce at least £100bn more QE in 2021, more than the consensus currently expects."

Investors were also keeping an eye on the US election results as they come in, with Biden edging ahead of Republican Donald Trump.

Rabobank said: "With Michigan and Wisconsin called for Biden, the Democrats are inching towards the necessary 270 electoral college votes to secure the presidency (264 currently) although the ongoing counting of mail-in ballots and a raft of legal challenges mean clarification regarding the result could be quite some time away."

In equity markets, home emergency repairs company Homeserve was the standout gainer on the FTSE 100, most probably on expectations it will benefit from the second lockdown.

Hikma Pharmaceuticals was also in the black as it lifted full-year guidance for its generics business and reiterated guidance for its injectable and branded segments.

Tate & Lyle, Biffa and Inchcape were all on the front foot after well-received updates, while Watches of Switzerland was boosted by an initiation at 'buy' by Jefferies and Trainline was higher after an upgrade to 'overweight' at JPMorgan. Trainline was also in focus after the release of its half-year results.

On the downside, Sainsburys lost ground after saying it was axing up to 3,500 jobs as part of a shakeup of its fresh fish and meat counters and Argos stores, while reporting a 6.9% rise in first-half retail sales. The group reported a loss before tax of £137m, reflecting £438m in one-off costs associated with the closure of 120 Argos stores.

Market Movers

FTSE 100 (UKX) 5,903.66 0.35%
FTSE 250 (MCX) 17,900.08 0.58%
techMARK (TASX) 3,773.15 0.41%

FTSE 100 - Risers

Homeserve (HSV) 1,225.00p 5.24%
Persimmon (PSN) 2,549.00p 3.28%
Hikma Pharmaceuticals (HIK) 2,729.00p 2.83%
Ashtead Group (AHT) 3,059.00p 2.75%
Evraz (EVR) 370.10p 2.75%
Experian (EXPN) 3,121.00p 2.73%
Just Eat Takeaway.Com N.V. (CDI) (JET) 9,252.00p 2.73%
Polymetal International (POLY) 1,797.00p 2.39%
Ferguson (FERG) 8,452.00p 1.98%
Fresnillo (FRES) 1,279.50p 1.91%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 80.30p -4.29%
Sainsbury (J) (SBRY) 202.40p -3.11%
Aveva Group (AVV) 4,295.00p -2.76%
Lloyds Banking Group (LLOY) 27.86p -2.31%
BP (BP.) 204.20p -2.18%
Anglo American (AAL) 1,840.00p -1.57%
Imperial Brands (IMB) 1,256.00p -1.18%
International Consolidated Airlines Group SA (CDI) (IAG) 101.85p -0.88%
Associated British Foods (ABF) 1,692.50p -0.85%
Royal Dutch Shell 'A' (RDSA) 1,023.60p -0.79%

FTSE 250 - Risers

Tate & Lyle (TATE) 668.40p 5.59%
Trainline (TRN) 288.20p 5.57%
Biffa (BIFF) 230.50p 4.54%
Inchcape (INCH) 554.50p 3.94%
Spirent Communications (SPT) 295.00p 3.33%
Watches of Switzerland Group (WOSG) 410.50p 3.27%
Allianz Technology Trust (ATT) 2,735.00p 3.21%
Balfour Beatty (BBY) 221.80p 3.16%
Just Eat Takeaway.Com N.V. (CDI) (JET) 9,252.00p 2.73%
Morgan Sindall Group (MGNS) 1,284.00p 2.72%

FTSE 250 - Fallers

Carnival (CCL) 871.40p -4.01%
Virgin Money UK (VMUK) 100.35p -3.18%
Coats Group (COA) 60.50p -3.04%
IWG (IWG) 258.80p -2.41%
Wizz Air Holdings (WIZZ) 3,410.00p -2.35%
Ashmore Group (ASHM) 370.20p -2.32%
Greencore Group (GNC) 89.25p -2.08%
Cineworld Group (CINE) 27.11p -1.92%
Caledonia Investments (CLDN) 2,650.00p -1.85%
TUI AG Reg Shs (DI) (TUI) 315.80p -1.74%