UPDATE 1-London stocks jump as Fed bond-buying boosts recovery hopes

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* Fed to start buying corporate bonds on Tuesday

* BoE decision on asset purchase eyed later in the week

* Cineworld jumps on plans to reopen all theatres by July

* FTSE 100 jumps 2.5%, FTSE 250 climbs 2.7%
(Adds comments, background, updates prices)

By Shreyashi Sanyal and Shashank Nayar

June 16 (Reuters) - UK shares jumped on Tuesday after the
U.S. Federal Reserve's move to expand its purchase of corporate
bonds to contain the fallout from the COVID-19 pandemic eased
liquidity concerns and boosted hopes of a global economic
recovery.

The Fed said it would start purchasing corporate bonds on
Tuesday through the secondary market corporate credit facility
(SMCCF) to beef up liquidity in the market.

UK investors are now expecting the Bank of England to raise
its asset purchase target by 100 billion pounds ($127 billion)
on Thursday, as bond-buying becomes the central bank's main
weapon for tackling what could be the UK's deepest recession in
three centuries.

"Central banks everywhere are doing what they can to manage
economic catastrophe through liquidity infusion and whenever
this happens it gives confidence to the markets that everything
will be okay, leading to an immediate boost," said Keith
Temperton, a trader at Tavira Securities.

British blue-chip stocks rose 2.5%, with cyclical
stocks including life insurers, banks and
industrials among top advancers.

Markets were spooked by fears of a second coronavirus wave
at the beginning of the week as cases in Beijing and the United
States spiked, which dampened hopes of a recovery from the
coronavirus-led economic slump.

The mid-cap FTSE 250 index rose 2.7%, with cinema
operator Cineworld Group Plc surging 6.2% as it said
some of its theatres would reopen in the last week of June and
the rest in July.

Greggs rose 4.8% after the baker confirmed plans to
reopen 800 shops for takeaway only on June 18.

De La Rue surged 9.2% as the banknote printer said
Britain's Serious Fraud Office had closed an investigation into
"suspected corruption" in the company's South Sudan business.

Investors also shrugged off data that showed a 612,000 fall
in payrolls numbers in April and May and vacancies plunging by
the most on record.
(Reporting by Shreyashi Sanyal and Shashank Nayar in Bengaluru;
Editing by Anil D'Silva, Bernard Orr)