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* Rolls Royce jumps on hinting re-entry in jetliner market
* BHP, Rio Tinto biggest boosts to FTSE 100
* Paragon Banking jumps on positive outlook
* FTSE 100 up 0.4%, FTSE 250 up 1.3%
(Adds comments, updates prices throughout)
By Shreyashi Sanyal
Dec 3 (Reuters) - The FTSE 250 index, considered a proxy for
Brexit sentiment, jumped on Thursday as investors hoped for a
trade deal with the European Union before a year-end deadline,
while miners rose as iron ore prices hit a record high.
The mid-cap FTSE 250 .FTMC rose 1.3% to its highest since
late February after Irish Foreign Minister Simon Coveney said he
hoped for a deal in the next few days. However, EU officials see
uncertainties as significant gaps remain on some main issues.
"Investors may soon be giving more serious thought to the
prospect of no deal this year, and then potentially another
round of negotiations in 2021 where the UK could be in a weaker
bargaining position," said Russ Mould, investment director at AJ
Bell.
"This would be a complete turnaround of events given how so
many people thought we were on the cusp of striking a deal,
thereby ending the year on a more positive note alongside the
vaccine news."
The blue-chip FTSE 100 .FTSE added 0.4%, with miners Rio
Tinto RIO.L , Anglo American AAL.L and BHP Group BHPB.L
boosting.
The index has tracked a recent rally in global equity
markets, ending November with its best monthly performance since
1989 as signs of a working COVID-19 vaccine raised hopes of a
faster economic rebound next year.
Although the UK approved the Pfizer-BioNTech COVID-19
vaccine on Wednesday, investor sentiment has been subdued on
concerns around the near-term damage to the economy with
coronavirus-related business restrictions set to stay in place.
Rolls Royce RR.L jumped 15.5% after a report said it was
considering a possible re-entry into the narrow-body jetliner
market.
Paragon Banking Group PAGPA.L gained 4.6% as it said
pandemic-led disruptions to lending had affected its business.