UPDATE 2-FTSE 100 marks best week in 4 months; buyout offer lifts Millennium & Copthorne

* FTSE 100 up 1%; FTSE 250 up 0.9%
* Disappointing U.S. jobs data raises rate cut hopes
* Millennium & Copthorne surges after buyout offer
* Ferrexpo rises after H1 forecast

(Adds company news items, updates to closing prices)
By Muvija M
June 7 (Reuters) - Expectations of an interest rate cut
after disappointing U.S. jobs data fuelled a rally in UK shares,
helping London's FTSE 100 rise for the fifth straight session on
Friday, while Millennium & Copthorne Hotels gained one-third in
value after a takeover bid.
The FTSE 100 index .FTSE rose 1% and the FTSE 250 midcap
index .FTMC advanced 0.9%, with gains across all sectors.
After the European Central Bank on Thursday disappointed
some with its moves towards policy stimulus, investors were
hopeful of an interest rate cut by the Federal Reserve in the
near future following a weaker-than-expected U.S. employment
report. "Investors now expect any confirmed economic downturn to be
salved by easing," Ken Odeluga, City Index analyst, said.
The prospect of more stimulus on both sides of the Atlantic
has been at the heart of gains this week that helped the FTSE
100 record its best week in four months, easing fears of a
global slide into recession.
Signs of a softening in U.S.-Mexico trade tensions and
Washington granting Chinese exporters more time before
increasing tariffs also boosted sentiment. Tobacco stocks and consumer giants, considered safer bets at
times of macro-economic uncertainties, were still in demand, in
a sign of the continuing nerves over global growth that have
dominated markets since the start of May.
British American Tobacco BATS.L jumped 3.4%, leading gains
on the main index.
Among midcaps, Millennium & Copthorne Hotels MLC.L surged
35% to 680 pence, nearly matching the 685 pence a share offered
for the company by Singapore-listed real estate firm City
Developments CTDM.SI . Ferrexpo FXPO.L jumped nearly 8% after saying it expected
first-half core earnings to rise "materially" on the back of
higher pricing, production and sales volumes. Stock ended 4%
higher.
Fantasy miniatures maker Games Workshop GAW.L rose 5%
after it pointed to a rise in annual earnings year-on-year and
stuck to its targets. Construction firm Kier Group KIE.L , whose shares plunged
by 40% earlier in the week after a profit warning, added 7.2%.
Among a handful of losers was Royal Mail RMG.L , which fell
4% after HSBC cut its rating for Britain's former postal
monopoly to "Hold".
Its shares had tumbled to a record low earlier this week
when Jefferies analysts said the risk of state-ownership was
likely to keep potential investors on the sidelines.
Housebuilders and other domestically-focused stocks
including regional airlines, considered most exposed to an
economic hit from a hard Brexit, did not budge after British
Prime Minister Theresa May officially stepped down as leader of
the governing Conservatives after failing to deliver on Brexit.