BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks rallied on Tuesday as upbeat factory activity data from China and early data showing that a number of vaccines are highly effective in preventing the novel coronavirus boosted hopes of an economic recovery.
The pound crossed $1.34 for the first time in three months and also rose against the euro after a U.K. minister warned the EU that Britain will not be 'tied to their way of doing things.'
It was reported earlier that the European Union will launch contingency measures if there is a no trade deal with Britain by Wednesday or Thursday.
The benchmark FTSE 100 jumped 109 points, or 1.7 percent, to 6,375 after declining 1.6 percent the previous day.
Lloyds Banking Group surged 4.2 percent, a day after it hired the HSBC banker Charlie Nunn as its new chief executive.
Tate & Lyle rose over 1 percent. The company has strengthened its position in the low sugar and calorie market with the acquisition of Sweet Green Fields.
AstraZeneca added 1.6 percent. The pharmaceutical company has agreed to sell the rights to Crestor (rosuvastatin) and associated medicines in over 30 countries in Europe, except the U.K. and Spain, to Grünenthal GmbH.
Weir Group gained 1.7 percent. The mining technology provider has won a 95 million pounds order to provide aftermarket components and service to the Iron Bridge magnetite Project in Western Australia.
Gold and silver producer Polymetal International rallied 2.2 percent after it announced an initial investment of $0.5 million in exchange for a 35 percent stake in a joint venture with a junior.
In economic releases, U.K. house prices rose the most in nearly six years in November, but the outlook remains highly uncertain amid a surge in the coronavirus pandemic, the Nationwide Building Society said, citing results of the monthly house price survey.
The house price index rose 6.5 percent year-on-year, which was the fastest pace of increase since January 2015. House price inflation was 5.8 percent in October. Economists had forecast a 5.5 percent increase.
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