UPDATE 2-London stocks gain after govt, BoE extends stimulus programme

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* BoE expands its bond-buying programme
* Sunak extends job furlough scheme
* Inchcape jumps on upbeat Q3 profit, second-half outlook
* FTSE 100 up 0.4%, FTSE 250 adds 0.7%

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By Devik Jain
Nov 5 (Reuters) - London stocks rose on Thursday after the
government and Bank of England both ramped up stimulus
programmes to cushion the struggling economy as England goes
into a second national lockdown.
The blue-chip FTSE 100 index .FTSE closed 0.4% up, with
shares in insurer RSA Insurance Group Plc RSA.L surging 45.7%
after it reported a rise in underwriting profit and said
pandemic-related exclusions would limit lockdown impacts.
The domestically focused mid-cap FTSE 250 .FTMC ended 0.7%
higher after finance minister Rishi Sunak extended the
government's costly coronavirus furlough scheme until the end of
March and announced billions of pounds in other forms of
support. Earlier on Thursday, the BoE expanded its already huge asset
purchase programme by a further 150 billion pounds ($195
billion) helping the government to fund the surge in public
spending. "Today's announcements are vital steps to shelter the UK
economy through a difficult winter. The extension of the
furlough scheme will help provide a much needed bridge for
households and businesses until the economy can reopen," said
Ambrose Crofton, global market strategist at J.P. Morgan Asset
Management.
"However, the risk remains that for many businesses, faced
with the uncertainty of how long this crisis may last, they may
decide to make lasting decisions to either cut jobs or cease
trading."
Focus was also on the U.S. presidential election race,
with Democrat Joe Biden edging closer to victory, while
incumbent President Donald Trump pursued a litigation strategy
as election officials tallied votes in the handful of states
that will decide the outcome. Auto distributor Inchcape Plc INCH.L jumped 6.6%, after
a beat-and-raise quarter, while Trainline Plc TRNT.L jumped
12.5%, as JP Morgan upgraded the stock to 'overweight' after
first-half results. Supermarket group Sainsbury 's Plc SBRY.L tumbled 5.2%
after it reported a first-half pretax loss and warned of 3,500
job cuts in restructuring.