(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Novacyt gains on French approval for COVID-19 test
* Legal & General to pay 2019 dividend, shares surge
* Rolls Royce jumps on securing debt facility
* FTSE 100 up 3.1%, FTSE 250 adds 5.1%
(Updates with closing price)
By Devik Jain and Sruthi Shankar
April 6 (Reuters) - UK shares surged on Monday, led by
battered travel stocks, insurers and housebuilders, as investors
welcomed signs of slowing increases in coronavirus-related
deaths in the worst-affected parts of western Europe.
The internationally focused FTSE 100 closed up 3.1%,
still underperforming its European peers as exporters were
pressured by a recovering pound.
The currency rebounded from an overnight dip on expectations
that British Prime Minister Boris Johnson could shortly be back
at work after being admitted to hospital on Sunday night with
persistent coronavirus symptoms.
Volatility gauges dipped and stock markets soared across the
world after last week's modest selloff as new infections and
deaths slowed in Italy and Spain, while hard-hit New York
reported on Sunday that deaths had fallen slightly from the day
before.
"We're seeing slowing cases in certain sections of Europe
and that's bringing a rush of buying into the market," said
Keith Temperton, a sales trader at brokerage Tavira Securities.
"However, longer-term impacts of what's happening and what
happened are going to put pressure on the markets."
Despite policymakers injecting trillions of dollars into the
global economy, the FTSE 100 was down about 27% from its January
peak as economic data in the recent weeks suggests a sharp
economic slump might be under way.
A survey on Monday showed British consumer confidence
recorded its biggest fall in more than 45 years, while new car
sales dropped faster than during the 2008-09 financial
crisis.
However, the less pessimistic mood on Monday drove investors
to buy some of the worst-hit sectors such as travel and leisure
, which has nearly halved in value so far this year
as country-wide lockdowns hamper demand.
Cruise operator Carnival Plc, IAG-owned British
Airways and easyJet jumped between 14% and 16%.
Aero-engine maker Rolls-Royce surged 18% after it
secured an additional revolving credit facility, but said it was
scrapping its targets and final dividend.
Insurer Legal & General Group soared 16.7%,
recovering sharply from last week's losses after it said it
would pay a 2019 dividend even after a European Union regulator
said insurers and reinsurers should temporarily halt payouts.
Peers Prudential and Aviva rose 11% and 5.3%,
respectively.
Housebuilders such as Persimmon, Taylor Wimpey
and Barratt Development, which have suffered in
the recent weeks on fading domestic growth perospects, jumped
between 12% and 16%.
The domestically focused midcaps surged 5.1%, with
Ladbrokes-owner GVC jumping 19% as it halved its
estimate for a monthly hit to profits from the
coronavirus-driven shutdown in international sports.
Healthcare company Novacyt rose 14% after its
COVID-19 diagnostic test won French approval, making it
available for immediate distribution in France.
However, Daily Mirror-owner Reach Plc dropped 9.9%
after it suspended its dividend and said it would furlough
staff, cut wages and management pay to weather the health
crisis.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru;
Editing by Arun Koyyur and Keith Weir)
