UK stocks surged more than 2% on Monday as investors bet on a faster recovery from a looming coronavirus-driven recession, while Hochschild Mining hit a nearly three-month high after saying it would restart its Peru operations.
The precious metals miner jumped 11.0% to the top of the FTSE 250 as it also signalled full output from its Inmaculada and Pallancata mines in Peru in the coming weeks.
The mining index added 5.2%, tracking commodity prices higher, while the domestically focussed FTSE 250 rose 2.5%.
The FTSE 100 was up 2.3% after ending Friday with its first weekly slide in three. BP Plc and Royal Dutch Shell Plc gained 5.6% and 5.3%, respectively, as signs of higher demand drove oil prices to a one-month high.
Trillions of dollars in global stimulus helped the FTSE 100 rebound in April from a brutal coronavirus-fuelled selloff in March, but gains in May have been tempered by growing evidence of the economic havoc already wrought by the health crisis. The banking index was among the smallest gainers of the day as a report cited the Bank of England's chief economist as saying the central bank was looking more urgently at negative interest rates to prop up the economy.
London-listed shares of Ireland-based Ryanair Holdings Plc jumped 6.7% even as it cut its annual passenger traffic target and warned it will look at pulling out of some European airports to ride out a near halt in global travel. On the other hand, mall operator Intu Properties Plc slumped as much as 19% after warning it would likely breach its debt commitments at the end of June due to falling rental payments.
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