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UPDATE 2-FTSE 100 posts best week in over a month as economy strengthens

Fri, 11th Jun 2021 09:02

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

* UK economy posts record annual jump in April, up 27.6%

* Sanne climbs on agreeing to takeover talks by Cinven

* Robert Walters rises on upbeat annual profit outlook

* FTSE 100 up 0.7%, FTSE 250 adds 0.6%
(Updates to close)

By Devik Jain and Amal S

June 11 (Reuters) - London's FTSE 100 index ended higher on
Friday, helped by gains in mining and financial stocks, while a
record annual jump in domestic economic output in April
strengthened views of a stronger recovery from last year's
pandemic-driven disruption.

The blue-chip index rose 0.7%, with precious metal
miners and base metal miners
jumping 0.7% and 1.8%, respectively, while insurance stocks
rose 1.3%.

The index was up 0.95% for the week, its biggest percentage
gain since the week ending May 7.

Miners including Rio Tinto, Anglo American,
Glencore and BHP rose between 0.1% and 2.88%.

"The metal price is back above $1,900 per ounce and if it
can maintain its recent momentum, traders may start to eye last
year's record highs," said Russ Mould, director at AJ Bell.

The domestically focused mid-cap FTSE 250 index
advanced 0.6%.

Official data showed Britain's recovery from the COVID-19
pandemic sped up in April as lockdown measures eased, and output
was a record 27.6% higher than a year earlier when the virus was
rampant.

"Its all very positive and markets are looking to continue
to build on it. We were expecting the central banks to make a
move against the inflation, but they doesn't seem to have done
that yet and with lower rates, easing of restrictions and more
good news coming, sentiments are up at the moment," said Michael
Baker, an analyst at ETX Capital.

British indexes have gained more than 10% so far this year
as businesses reopened and speedy vaccine rollouts boosted
sentiment about economic recovery.

However, they have traded in a tight range since mid-April
on fears of rising inflation and concerns that a recent
resurgence in domestic COVID-19 cases might delay a complete
economic reopening.

Among other stocks, Sanne Group jumped 8.8% as it
decided to enter into talks with Cinven after the private equity
firm made a sweetened offer of 1.42 billion pounds ($2.01
billion) to buy the asset management services provider.

Robert Walters added 1.7% after it forecast upbeat
annual pre-tax profit.
(Reporting by Devik Jain and Amal S in Bengaluru; editing by
Uttaresh.V and Jonathan Oatis)

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