UPDATE 2-Trade relief spurs UK stocks, buyout talks lead Thomas Cook higher

* FTSE 100 up 0.6%, FTSE 250 up 0.3%
* Stocks gain as U.S.-Mexico trade dispute eases
* Woodford Patient Capital Trust falls
* Thomas Cook surges on preliminary offer for unit

(Adds analyst comment, updates to closing prices)
By Shashwat Awasthi
June 10 (Reuters) - London's main index jumped to a more
than one-month high on Monday as a U.S.-Mexico deal to avert
proposed tariffs lifted global markets, while tour operator
Thomas Cook surged on a potential sale of its main business to
its top shareholder.
The FTSE 100 .FTSE gained 0.6% as investors cheered the
agreement between the United States and its southern neighbour.
The mid-cap FTSE 250 .FTMC rose 0.3%. Gains were spread largely across the board on the blue-chip
bourse, with heavyweight financial stocks, miners and oil shares
all boosting the FTSE 100.
Hopes of an interest rate cut by the Federal Reserve to
stimulate the economy also lingered after weak U.S. jobs growth
data on Friday. Analysts, however, downplayed expectations of a rate cut.
"To suggest that (the U.S. jobs data) makes a September rate
cut more likely is stretching things a touch," CMC Markets
analyst Michael Hewson said. Markets.com's Neil Wilson called
hopes of near-term rate cuts "overly optimistic".
Small-cap Thomas Cook TCG.L , which has put its tour
operating business up for sale in the aftermath of three profit
warnings in the past year, surged 17.1% after it said it was in
talks with Fosun Tourism 1992.HK , its largest shareholder.
The mid-cap index shrugged off a slide in sterling as
broader market sentiment prevailed. The currency had slipped
after data showed Britain's economy contracted sharply in April,
with the manufacturing sector the worst hit. "It paints an ugly picture of the UK economy, which is
continuing to feel the effects of the regular shunting of the
Brexit date," Spreadex analyst Connor Campbell said.
On the FTSE 100, online grocer Ocado OCDO.L added 4.7%
after announcing a 17 million-pound investment in the newly
emerging vertical farming industry. But plumbing products distributor Ferguson FERG.L lost
4.6% after the company's third-quarter revenue missed analysts'
expectations. Woodford Patient Capital Trust WPCT.L tumbled another 6%,
despite reassuring investors that the suspension of a flagship
equity fund had not affected its "operational performance".
The FTSE 250-listed fund has lost nearly a quarter of its
value this month. Hargreaves Lansdown HRGV.L , the blue-chip
fund supermarket which had been a major backer of Woodford's
suspended fund, gave up 1.4%. Small-cap MJ Gleeson GLEG.L tumbled almost 11%, its worst
day since June 2016, after the low-cost housebuilder said its
chief executive officer would leave after "extensive"
discussions regarding remuneration and succession planning.