Travel stocks lift London shares as higher unemployment rate weighs

London's FTSE 100 rose on Tuesday after scaling a near three-month high in the previous session, although gains were capped on a slightly stronger pound, while a higher jobless rate stoked fears of a faltering economic recovery. The blue-chip FTSE 100 index rose 0.6%.

London's FTSE 100 rose on Tuesday after scaling a near three-month high in the previous session, although gains were capped on a slightly stronger pound, while a higher jobless rate stoked fears of a faltering economic recovery. The blue-chip FTSE 100 index rose 0.6%. The domestically-focussed mid-cap FTSE 250 index added 0.5%, boosted by travel and leisure and aero stocks.

Official data showed layoffs in Britain hit a record high during the third quarter as the unemployment rate jumped to 4.8%, while surveys said consumer spending faded in October even as the re-introduction of lockdowns prompted a renewed stockpiling spree. Shares in Premier Foods Plc jumped 3.9% after it raised its full-year trading profit outlook and said it expects higher demand for its brands due to the recent government restrictions on eating out.

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