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LONDON: London's FTSE 100 jumped on Tuesday as prospect of an effective Covid-19 vaccine and optimism about a Brexit trade deal with European Union electrified the mood, while Premier Foods tumbled after its corporate trading update.

The blue-chip FTSE 100 index closed up 1.8%, gaining 6.5% in two days, its best since March 26, with travel and leisure, energy and aero stocks among the biggest gainers.

After rising nearly 1.3% in afternoon trade, the domestically focussed mid-cap FTSE 250 index ended 0.9% higher, with Capita Plc jumping 26.9% after the outsourcer eked out a small rise in adjusted third-quarter core profit helped by cost-cutting.

Croda International Plc jumped 7% after the specialty chemicals maker struck a additives supply deal with Pfizer Inc for manufacturing its Covid-19 vaccine candidate.

Premier Foods Plc shed 10% even after it lifted its full-year trading profit outlook, while motor insurer Direct Line Group Plc fell 2.2% on lower quarterly premiums because of weak car sales due to the pandemic.

Property firm Land Securities Group Plc rose 4% after it resumed dividend payouts even as its first-half losses soared to 835 million pounds.-Reuters

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