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* Gold tops $2,000 an ounce on global economic uncertainty
* London metals index at highest since January
* Hastings surges on agreeing $2.2 billion buyout
* UK businesses grow at fastest pace in 5 years in July
* FTSE 100 jumps 1.1%, FTSE 250 surges 1.9%
(Updates to close)
By Sagarika Jaisinghani and Susan Mathew
Aug 5 (Reuters) - Surging prices for gold and other metals
and a $2.2 billion buyout offer for Hastings Group saw London's
mid-cap index post its best session in seven weeks on Wednesday,
with some upbeat earnings and economic data also aiding
sentiment.
A 17.7% surge for motor insurer Hastings drove the
FTSE 250 up 1.9%, after it agreed to be bought by
Finland's Sampo and South Africa's Rand Merchant
Investment (RMI).
Meanwhile, record high gold prices saw miners of the
yellow metal rocket: Centamin Plc and Hochschild Mining
jumped 9.6% and 14.4%, respectively.
London's metals index soared 5% to an over
six-month high as mining giants BHP, Rio Tinto,
Glencore rallied on rising copper and iron ore prices.
The blue-chip FTSE 100 gained 1.1% with a five-month
high for crude prices lifting oil majors BP and Royal
Dutch Shell.
On the data front, a survey showed British businesses grew
at the fastest pace in 5 years in July after a COVID slump,
while in the United States, the services sector expanded and
private payrolls increased far less last expected last month.
Investors also eyed signs of progress in a U.S. fiscal
relief bill.
Historic global stimulus has helped British stock markets
roar back from the pandemic-fuelled crash in March, but the
indexes have struggled as a rise in cases threaten further
lockdowns.
The Bank of England is due to announce its next policy
decision at 0600 GMT on Thursday with some early macroeconomic
figures signalling a pickup in the housing and auto industries
with the easing of business restrictions.
"The BoE will have to do considerably more quantitative
easing than it already has to stimulate demand and boost
inflation back to its 2% target," said Paul Dales, chief UK
economist at Capital Economics.
Among earnings-driven moves, soft drinks bottler Coca-Cola
HBC rose 8.1% as its business recovered from April lows,
while bookmaker William Hill gained 8.9% on a first-half
profit beat.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Saumyadeb Chakrabarty, Rashmi Aich and Alison Williams)
