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* Entain jumps to all-time high on DraftKings takeover
* Oxford BioMedica gains on Serum Institute of India
* Soap maker PZ Cussons drops as Q1 revenue declines
* FTSE 100 up 1.5%, FTSE 250 adds 0.7%
Sept 22 (Reuters) - London's FTSE 100 recorded its best day
in two months on Wednesday, extending gains aided by heavyweight
commodity-linked and bank stocks, while investors awaited key
central bank meetings for clues on a timeline for tapering
The FTSE 100 ended 1.5% higher, with banks
leading gains after default fears around property
giant China Evergrande eased.
"We had a sell-off on the Evergrande fears and now we've
rallied back. Today's major Evergrande news has given the market
relief, which has pushed banks higher," said Keith Temperton,
sales trader at Forte Securities.
Entain jumped 5.1% to an all-time high after the
gambling firm revealed a $22.4 billion takeover proposal from
Boston-based DraftKings, which was nearly double a bid
it rejected from MGM this year.
Easing lockdowns and travel restrictions coupled with higher
commodity prices have helped the FTSE 100 gain 1.7% so far this
week to trade above the 7,000 psychological level.
Investors now await the outcome of the U.S. Federal
Reserve's meeting ending later in the day and the Bank of
England's rate decision on Thursday.
"I don't see the Fed doing anything particularly aggressive
just yet, but the language will change, Powell has to actually
say something about when taper will start," Temperton added.
Also among the gainers were Industrial metal miners
, up 3.2% as copper prices surged.
The domestically focussed mid-cap index climbed
0.7%, with Oxford BioMedica being the biggest gainer on
a 50 million pound ($68.24 million) investment from Serum
Institute of India..
Gains in travel and leisure stocks also
supported the mid-cap index.
Over-50s holidays group Saga Plc dropped 0.1% after
it warned there was still uncertainty on the longer-term impact
of COVID-19 on the sector.
Imperial Leather soap maker PZ Cussons dropped 4.6%
after reporting lower first-quarter revenue.
(Reporting by Shashank Nayar and Amal S in Bengaluru; editing
by Uttaresh.V and Subhranshu Sahu; Editing by Alex Richardson)