FTSE 100 hits 19-day high as investors bet on recovery

London's FTSE 100 climbed for a third straight day on Tuesday as investors pinned their hopes on a speedy recovery from a coronavirus-fuelled recession, while several more UK firms took steps to shore up cash reserves to ride out the economic slump. The blue-chip FTSE 100 rose 0.7% to a two-and-a-half week high following its strongest finish in nearly two months on Monday that was powered by positive data from an early-stage trial of a coronavirus vaccine.

The domestically focussed FTSE 250 added 1.3%, with battered insurers, miners and industrials among the strongest gainers in early trading. Specialist insurer Beazley Plc jumped 4.9% as it said it had raised 247 million pounds ($301.83 million) in fresh capital.

But the world's largest caterer Compass Group fell 2.6% after launching a 2 billion pound ($2.44 billion) share offer to boost liquidity as the health crisis shuts its food service operations in offices and schools. Tobacco group Imperial Brands Plc shed 3.9% as it announced plans to cut its dividend by a third and said it expects a bigger hit from the crisis in the second half of the year.