August 12, 2019 / 7:27 AM / 4 months ago

UK shares gain broadly, Thomas Cook tanks

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* FTSE 100, FTSE 250 up 0.6%

* Banks, oil majors biggest boost

* Thomas Cook slumps 30%

* Tullow Oil biggest FTSE 250 gainer

Aug 12 (Reuters) - London’s FTSE 100 rebounded on Monday after suffering its steepest five-day drop since May last week over worries of a prolonged U.S.-China trade war, while tour company Thomas Cook plunged after updating on its recapitalisation plans.

The FTSE 100 index was up 0.6% by 0715 GMT, with the midcap index also gaining 0.6%.

The blue-chip bourse got its support from gains in Asia-exposed financial stocks and oil majors in a broad-based recovery, tracking rises in China after Beijing showed support for its capital markets by relaxing margin financing.

Thomas Cook, the world’s oldest travel company, tanked nearly 30% after saying its existing shareholders were expected to be significantly diluted as part of its rescue plan.

Tullow Oil, however, jumped 15% on the midcap index after publishing data confirming high-quality oil bearing sandstone reservoirs in its well in Guyana. (Reporting by Muvija M and Indranil Sarkar in Bengaluru; Editing by Shounak Dasgupta)

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