- London's FTSE 100 rallied on Tuesday, getting a boost from financial and mining stocks as investors bet on more stimulus measures to soften the economic impact from a second wave of new coronavirus infections.

The commodity-heavy FTSE 100 benchmark had jumped 1.5% to 5,738.22 as of 9am, bolstered by banks, construction, energy and mining stocks. The more domestically focused mid-cap FTSE 250 was also firmly higher, around 1.3% to 17,411.17.

The UK markets tracked a strong start for major indices across Europe on Tuesday plus a rally in Asia ahead of the US Presidential election.

In company news, Crest Nicholson jumped 17.5% after the homebuilder forecast annual profit ahead of market expectations and reinstated dividends due to a strong recovery in the housing market.

FTSE 100 peer topped the blue chip leader board, up nearly 5% to 113.98p.

Food delivery business Just Eat Takeaway was the biggest FTSE faller, down around 1% at £86.69.

Associated British Foods reported a slump in annual profit as the coronavirus-led hit to Primark sales offset growth in its sugar and food ingredients units.

For the year ended 12 September, pretax profit fell 40% to £686 million year-on-year as revenue dropped 12% to £13.94 billion.

The revenue decline was mainly driven by the 'loss of sales for the period in which Primark's stores were closed,' the company said.

'We estimate that Primark lost £2 billion of sales and some £650 million of profit as a result of COVID-19.'

The weakness in Primark offset combined adjusted operating profit growth of 26% for grocery, sugar, ingredients and agriculture.

ABF shares dipped 17p to £17.05.

Thread manufacturer Coats jumped 13% to 61.35p after upgrading its outlook on profit following improved trading performance.

Adjusted operating profit for 2020 is expected to be ahead of market expectations and in the range of $100 million to $110 million, the company said.

For the period 1 July 2020 to 31 October 2020, sales declined 11% year-on-year, which reflected 15% organic decline and a 6% contribution from the acquisition of Pharr High Performance Yarns, acquired in February.

The decline was pressured by a 15% fall in apparel and footwear.

'The improving performance seen to date and trading outlook for the remainder of 2020 remains encouraging, however, we are mindful that uncertainties related to Covid remain around the recovery profile of our various global end markets as we look into 2021,' the company said.

Packaging firm DS Smith flagged improving market conditions and maintained its own financial performance guidance despite the obvious uncertainties around the coronavirus pandemic.

Shares in the FTSE 250 business rallied 3% to 300.6p as investors welcomed news that market trends and the company's performance had continued to improve since issuing its previous update on 8 September.

Budget carrier Wizz Air flew 69.1% fewer passengers during the month of October year-on-year, as the pandemic continued to pressure travel demand.

Passenger volumes in September dropped to 1,146,227, down from 3,711,445 in October 2019.

The company's load factor fell 29.4 percentage points to 65.9%.

Tobacco giant British American Tobacco said its US business had acquired the nicotine pouch product assets of Dryft Sciences, a US-based modern oral nicotine product company.

The acquired products would be sold under the company's global modern oral nicotine brand, VELO, boosting its offering from 4 to 28 product variants.

'The addition of Dryft to our US Velo brand is a major step forward, further enhancing our successful vaping and oral portfolio,' the company said in a note.

Defence company Chemring said it expected annual adjusted operating profit to be at the top end of current market expectations following a strong end to the year. The current range of analyst expectations for adjusted operating profit for 2020 is within a range of £47 million to £53 million.

Net debt at year end is now expected to be approximately £48 million, down from £75.7 million on-year.

Officer space operator IWG reported a fall in third-quarter revenue, though said it was starting to see improved sales activity. In the three months to 30 September 2020, revenue fell 10.1% to £583.3 million year-on-year and revenue across its open centres decreased 5.5% at constant currency.

The company said good sales activity levels in July, August and September, was offset by customer churn and the significant impact the pandemic had on service revenue, which historically accounts for approximately 28% of total revenue.

The shares rallied 5% to 260p.

Cruise company Carnival Corporation said its North American cruise line brands would extend their existing pause in operations, suspending cruise voyages until the end of the year. The US fleet includes five brands: Cunard North America, Holland America Line, Princess Cruises and Seabourn. The shares nudged 21.3p higher at 898.9p.

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