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London stocks jump as China data fuels recovery optimism

Published 03/06/2020, 08:14
Updated 03/06/2020, 08:18
© Reuters.
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(For a live blog on European stocks, type LIVE/ in an Eikon
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* FTSE 100 up 0.8%, FTSE 250 adds 1.0%

June 3 (Reuters) - UK shares jumped to fresh three-month
highs on Wednesday as data showed China's services sector
returned to growth in May, bolstering hopes of a faster global
rebound from a coronavirus-driven slump.
The export-heavy FTSE 100 .FTSE rose 0.8%, as the reading
of a survey gauging China's May services sector activity jumped
to its highest level since 2010 following the easing of sweeping
lockdowns. The mid-cap FTSE 250 .FTMC added 1%, with energy
.FTNMX0530 , life insurers .FTNMX8570 and aerospace-related
stocks .FTNMX2710 among the early gainers.
Travel and leisure stocks .FTNMX5750 rose for a third
straight session as the government said it would review its
quarantine procedures for international arrivals based on their
economic impact. A 7.3% jump for TUI Group TUIT.L , Europe's biggest travel
company, was also driven by a deal it struck with U.S.-based
Boeing BA.N for compensation and slower delivery of the 737
MAX aircraft. Defence contractor Chemring Group CHG.L soared 17.6% to
the top of the FTSE 250 as it maintained its annual targets and
raised dividend after managing to win new orders from the United
States despite the coronavirus crisis.

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