London stocks jump as China data fuels recovery optimism

UK shares jumped to fresh three-month highs on Wednesday as data showed China's services sector returned to growth in May, bolstering hopes of a faster global rebound from a coronavirus-driven slump. The export-heavy FTSE 100 rose 0.8%, as the reading of a survey gauging China's May services sector activity jumped to its highest level since 2010 following the easing of sweeping lockdowns.

The mid-cap FTSE 250 added 1%, with energy , life insurers and aerospace-related stocks among the early gainers. Travel and leisure stocks rose for a third straight session as the government said it would review its quarantine procedures for international arrivals based on their economic impact.

A 7.3% jump for TUI Group, Europe's biggest travel company, was also driven by a deal it struck with U.S.-based Boeing for compensation and slower delivery of the 737 MAX aircraft. Defence contractor Chemring Group soared 17.6% to the top of the FTSE 250 as it maintained its annual targets and raised dividend after managing to win new orders from the United States despite the coronavirus crisis.