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* Croda gains after launching strategic review of units
* Virgin Money falls due to higher-than-expected costs
* FTSE 100 up 1.8%, FTSE 250 adds 0.3%
May 5 (Reuters) - London's FTSE 100 clocked its best day in
over two months on Wednesday, supported by gains in heavyweight
mining and banking stocks on recovery optimism, while shares of
Croda International jumped after it announced a business review.
The blue-chip index rose 1.8%, with the speciality
chemicals group's shares gaining 3.6% after it
announced a strategic review of two units that cater more to
industrial customers as it shifts focus to consumer-care and
Miners provided the biggest boost to the
index tracking higher metal prices. Anglo American added
6.1%, after Citigroup raised its price target.
The wider banking index gained 2.9% with HSBC
Holdings and Barclays jumping more than 2%
"Confidence in global economic growth is driving markets
today," said Neil Wilson, chief market analyst at Markets.com.
"The miners are going to be leading the way, whatever type
of growth we get, products we produce and infrastructure
spending, the miners are going to be the ones producing the
The FTSE 100 has gained 8.7% so far this year as easing of
business restrictions after the third lockdown and improving
economic data coupled with speedy vaccine rollouts and
government support pointed to a strong recovery from the
pandemic crash last year.
However, concerns that central banks might put a lid on
their policies as economies reopen and inflation rises has kept
FTSE 100 in a tight trading range recently.
All eyes are now on the Bank of England's meeting on May 6
where it will likely slow its bond purchases.
The domestically focused mid-cap FTSE 250 index
Building materials supplier SIG gained 7.3% as it
sees return to profitability in the first half of 2021, and
forecast higher annual profit than previously expected.
British challenger bank Virgin Money slipped 1.6%
after a surprise one-off costs, knocking its shares despite a
return to half-year profit and a forecast for improved margins.
(Reporting by Devik Jain and Shivani Kumaresan in Bengaluru;
Editing by Krishna Chandra Eluri and Lisa Shumaker)