(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* UK layoffs hit record high, jobless rate rises to 4.8%
* Premier Foods tumbles after trading update
* Direct Line premiums dip, shares fall
* FTSE 100 up 1.8%, FTSE 250 adds 0.9% (Adds comment; updates to close)
By Devik Jain
Nov 10 (Reuters) - London's FTSE 100 jumped on Tuesday as prospect of an effective COVID-19 vaccine and optimism about a Brexit trade deal with European Union electrified the mood, while Premier Foods tumbled after its corporate trading update.
The blue-chip FTSE 100 index .FTSE closed up 1.8%, gaining 6.5% in two days, its best since March 26, with travel and leisure .FTNMX5750 , energy .FTNMX0530 and aero .FTNMX2710 stocks among the biggest gainers.
After rising nearly 1.3% in afternoon trade, the domestically focussed mid-cap FTSE 250 index .FTMC ended 0.9% higher, with Capita Plc CPI.L jumping 26.9% after the outsourcer eked out a small rise in adjusted third-quarter core profit helped by cost-cutting. markets had started November on a strong footing, also aided by stimulus measures from the British government and the Bank of England.
Data on Tuesday, however, showed layoffs in Britain hit a record high during the third quarter, while surveys said consumer spending faded in October even as new lockdowns spurred stockpiling. the unemployment picture is relatively bleak. However because of the vaccine, investors are feeling it's not going to last as long and that even though we may still face quite a bleak winter period, we can test whether or not it's effective in the mass vaccination program," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON: HRGV ).
Brexit news was also in focus with finance minister Rishi Sunak saying significant progress have been made in a post-Brexit trade deal talks. International Plc CRDA.L jumped 7% after the specialty chemicals maker struck a additives supply deal with Pfizer Inc (NYSE: PFE ) PFE.N for manufacturing its COVID-19 vaccine candidate. Foods Plc PFD.L shed 10% even after it lifted its full-year trading profit outlook, while motor insurer Direct Line Group Plc DLGD.L fell 2.2% on lower quarterly premiums because of weak car sales due to the pandemic. firm Land Securities Group Plc LAND.L rose 4% after it resumed dividend payouts even as its first-half losses soared to 835 million pounds.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.