UPDATE 2-London stocks rise on recovery hopes; BP top drag on weak earnings

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

* UK begins door-to-door testing to limit coronavirus spread

* Virgin Money jumps on higher customers; increases
provisions

* House prices drop first time in seven months in January

* FTSE 100 up 0.8%, FTSE 250 adds 1.5%
(Updates to market close)

By Shashank Nayar, Amal S and Shivani Kumaresan

Feb 2 (Reuters) - London shares rose on Tuesday, following
optimism about economic stimulus and a faster global recovery,
while oil manufacturing major BP dropped after reporting
weak earnings.

The blue-chip FTSE 100 index rose 0.8%, with
financial stocks, mainly HSBC Holdings and Barclays PLC
leading the gains. The mid-cap index added
1.5%.

BP fell 4.5% to the bottom of the FTSE 100 as its profit in
the last quarter of 2020 sunk to $115 million on weak energy
demand.

"Supporting a more positive mood was an apparent calming of
the Reddit-inspired frenzy on markets as well as hopes for a
vaccine-led exit from lockdown," said Russ Mould, investment
director at AJ Bell.

"In the short term a lot of attention will be across the
Atlantic with more big U.S. corporate names reporting and
continuing focus on the progress of new President Joe Biden’s
coronavirus relief package."

Britain began door-to-door testing to curb the spread of a
highly-infectious variant of the novel coronavirus, while the
country's house prices fell for the first time in seven months
in January, mortgage lender Nationwide said.

Global stock markets gained for a second day, ahead of
negotiations between U.S. President Joe Biden and Republican
senators on a new COVID-19 support bill.

The FTSE 100 has recovered nearly 30% from its March 2020
lows and is 15% away from its highest point last year, led by
stimulus support and re-opening optimism, but a surge in
infections and lockdowns have slowed growth.

Commodities trader Glencore fell 1.2% after
appointing Cynthia Carroll, the former chief executive officer
of London-based miner Anglo American, to its board of
directors.

Lender Virgin Money gained 7.7% as it reported a
modest increase in the number of customers and provided a
further 726 million pounds ($992.59 million) to protect its
balance sheet.
(Reporting by Shashank Nayar, Amal S and Shivani Kumaresan in
Bengaluru; editing by Uttaresh.V and Barbara Lewis)