StockMarketWire.com - The FTSE 100 closed significantly higher on Tuesday after being buoyed by stimulus measures in the US.

After a wobble since early June, stocks are firing on all cylinders again thanks to news that the US Federal Reserve would step in to buy corporate bonds, along with reports of a $1tn infrastructure spending plan being drawn up by the Trump administration.

The UK's benchmark index closed 2.94% higher to 6,242.79, while the S&P 500 surged over 2% in early trade.

Industrial equipment hire company Ashtead, which is heavily exposed to the US economy, jumped 14.4% to £27.64, as it maintained its progressive dividend policy.

Ashtead increased its annual dividend despite reporting a 48% slump in fourth-quarter profit, though it expressed confidence that it could strengthen its market position and generate strong cash flow in its new fiscal year.

Bakery chain Greggs rose 5.9% to £17.50 on announcing that it planned to re-open around 800 shops to takeaway customers on Thursday, and the rest of its outlets by early July.

Cinema company Cineworld gained 1% to 79.7p after it said it would reopen cinemas across some territories during the last week of June, with all theatres expected to be open over the course of July.

Utility services provider Telecom Plus gained 6.67% to £14.40 after it posted a 12% rise in annual profit and hiked its dividend, while claiming the Covid-19 crisis was having a limited impact on its business.

Engineering company Wood Group firmed 8.9% to 229.8p as it secured two solar engineering, procurement and construction contracts worth over $200m combined from an American power company.

Biotherapeutics group PureTech Health jumped 8.1% to 259.5p after its founded entity, Akili, received US regulatory approval for a digital-based treatment for attention-deficit/hyperactivity disorder.

Business branding company 4imprint ascended 7.26% to £25.85 on announcing that its orders had steadied in the US since states began lifting lockdown restrictions.

Video game developer Team17 rose 4.65% to 540p, having enjoyed higher-than-expected demand for its products during the Covid-19 crisis as people hunkered down at home during lockdowns.

Industrial chains supplier Renold rallied 27.3% to 9.2p, even as it booked a substantial fall in annual profit and scrapped its dividend, citing challenging markets throughout the year and the initial impact of the Covid-19 crisis.


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