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* Manufacturing PMI rises
* Wickes Group rises on upbeat annual profit outlook
* M&C Saatchi surges on strong annual results outlook
* FTSE 100 and FTSE 250 up 0.8%
(Updates with market close)
By Shivani Kumaresan and Devik Jain
June 1 (Reuters) - The British mid-cap stock index rose to a
record high on Tuesday, helped by gains in industrials and
consumer discretionary stocks, while an upbeat reading on
factory activity infused confidence on the economic recovery.
The domestically focused mid-cap FTSE 250 index
advanced 0.8% as a deluge of new orders helped drive a record
increase in British manufacturing activity last month as the
economy began to recover from the COVID-19 pandemic.
The blue-chip index climbed 0.8%, with base metal
miners gaining 3.7% as they tracked higher copper
and iron ore prices.
Oil majors BP and Royal Dutch Shell added
more than 1.2% each after Brent crude topped $70-mark on
favourable demand outlook.
"UK markets has been the big beneficiary of inflation trade
since it is a heavily weighted market with the commodity sector.
At the same time, it’s underperforming when compared to the rest
of Europe," said Keith Temperton, a sales trader at Forte
Securities.
"With talks going around about a delay in reopening,
developments related to COVID-19 will be keenly watched by the
markets."
Mortgage lender Nationwide said British house prices jumped
by an annual 10.9%, the most in nearly seven years, apparently
set to accelerate further as people seek new homes after the
pandemic.
The wider homebuilders index rose 2.1%.
The FTSE 100 index has traded in a tight range since April
as concerns grew that central banks might pare support early as
economies reopen and inflation climbs.
Among other stocks, Wickes Group added 4.7% after
the do-it-yourself retailer said its full-year profit would be
in the upper half of analyst expectations after sales surged in
April.
M&C Saatchi jumped 12.1% after the advertising
agency forecast upbeat annual results on new robust campaigns.
Travel food group SSP Group rose 3.0% after Peel
Hunt upgraded the stock to "add" on potential growth from
European air market opening.
(Reporting by Shivani Kumaresan and Devik Jain in Bengaluru;
editing by Uttaresh.V and David Gregorio)