UPDATE 2-Signs of rebounding economic growth sends FTSE 100 to 3-week highs

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* UK GDP falls by record 20.4% in Q2 but growth restarts in
May
* Financials, healthcare, consumer staples drive gains
* Insurer Admiral hits record high after profit rise,
dividend
* FTSE 100 up 2%, FTSE 250 gains 0.5%

(Updates to close)
By Sagarika Jaisinghani and Susan Mathew
Aug 12 (Reuters) - London's FTSE 100 closed at three-week
highs on Wednesday as investors cheered monthly data that showed
a restart in economic growth, while upbeat earnings from motor
insurer Admiral sent its shares soaring to an all-time peak.
Gross domestic product collapsed in the second quarter,
shrinking 20.4%, but the blue-chip index .FTSE outperformed
regional peers with its 2% gain as data showed growth restarted
in May and quickened by a record single-month increase in June,
slightly beating forecasts.
"UK is one of the cheaper markets out there and it's one of
the markets that investors expect to outperform if data
continues to improve in the next few months," said Andrea
Cicione, head of strategy at TS Lombard.
The lower valuation will also help UK markets benefit from a
rotation to value from growth - the first signs of which are
being seen through a rally in technology stocks in the United
States, Cicione added.
Financials, health care and consumer staples led gains,
while a surge in crude prices lifted oil stocks, helping the
FTSE 100 extended gains to a fourth straight session. O/R
The mid-cap FTSE 250 .FTMC closed up 0.5%, notching fresh
two-months highs.
A raft of stimulus has helped the benchmark UK stock indexes
bounce from their March lows, but they are still well off their
pre-pandemic highs amid surging unemployment and forecasts of a
slower-than-expected economic rebound.
In earnings-driven moves, Admiral Group ADML.L jumped 7.2%
to top the FTSE 100 after lower motor insurance claims during
Britain's coronavirus lockdown helped it record a 31% jump in
first-half profit and reinstate a special dividend. Meanwhile, cybersecurity firm Avast AVST.L slumped 3%
despite raising its full-year revenue forecast. The pandemic
impacted parts of the business, including reduced demand from
mobile operators for its security software, the company said.