UPDATE 3-London stocks end higher, fresh stimulus helps

* Sunak unveils more job support for businesses, workers
* AstraZeneca rises after positive update on COVID-19
vaccine
* Unilever gains on stronger quarterly sales
* FTSE 100 up 0.2%, FTSE 250 adds 0.6%

(Adds comment; updates to close)
By Devik Jain and Joice Alves
Oct 22 (Reuters) - London stocks ended Thursday on firmer
footing after a positive update on AstraZeneca's COVID-19
vaccine candidate and as UK finance minister Rishi Sunak
unveiled more support for businesses hit by the pandemic.
The blue-chip FTSE 100 index .FTSE closed up 0.2%, while
the domestically-focused mid-cap FTSE 250 .FTMC ended 0.6%
higher after opening lower. Gains were led by travel and leisure
.FTNMX5750 , banks .FTNMX8350 and insurers .FTNMX8570 .
Sunak announced new measures to help protect jobs, easing
the eligibility for his jobs support scheme, reducing the cost
for employers, and announcing new cash grants for affected
businesses. "Today's move (by Sunak) is a recognition of the economic
impact of tier two restrictions and the fact that the COVID-19
situation in the UK is worsening rather than improving," said
Edward Park, chief investment officer at Brooks Macdonald Asset
Management.
AstraZeneca shares rose 0.4% after a study found AstraZeneca
Plc's AZN.L Oxford COVID-19 vaccine accurately followed the
genetic instructions programmed into it to successfully provoke
a strong immune response. Fears about new coronavirus-led restrictions as well as
Brexit uncertainty have weighed on UK markets recently, with the
FTSE 100 on course for its second straight week of declines.
Three more areas of England were put in the "high" category
of the UK's three-tier restriction system on Thursday as
infections accelerate swiftly. Meanwhile, with time fast running out, Britain and the
European Union started intensified negotiations on Thursday in a
new, final push to try to secure a deal to protect billions of
dollars of post-Brexit trade between the neighbours.
In company news, Unilever Plc ULVR.L rose 0.4% after it
reported a stronger-than-expected return to sales growth in the
third quarter. Rentokil Initial Plc RTO.L gained 3.9% as the pest control
firm reported a 9.8% rise in third-quarter revenue due to higher
demand for its disinfection services.