By Shashwat Awasthi
(Reuters) - UK shares rebounded after two sessions of losses on Tuesday, as investors awaited signals from two of the world's big central banks on their concern over the coronavirus outbreak amid hopes that the number of reported new cases was slowing.
The FTSE 100 (FTSE) added 1%, helped by an 11% surge in travel company TUI (L:TUIT) after it said strong demand for holidays would help offset a hit from the Boeing (N:BA) 737 MAX aircraft groundings on its annual profit.
If that held for the rest of the day, it would be TUI's best day ever. Airlines easyJet (L:EZJ) and British Airways-owner IAG (L:ICAG) also added roughly 3.5% each.
The mid-cap FTSE 250 (FTMC) also advanced 0.7%, helped by a 4% rise in William Hill (L:WMH) after the bookmaker announced a partnership with U.S.-based CBS Sports, which Jefferies analysts touted as a "major step forward" for the British brand.
Britain's benchmark stock indexes have mirrored volatile swings in global markets over the past few weeks as the China-linked virus spreads, raising concerns of a widespread hit to economic growth.
The death toll from the outbreak has now crossed 1,000 but investors drew some comfort from signs from a slowdown in new cases in Hubei province as well as the steps Beijing has taken to pump more cash into the economy.
"Following the selling since the virus hit the headlines, it's now about the pace of acceleration or deceleration in the rate of new cases as well as the longevity of the economic impact," Markets.com analyst Neil Wilson said.
U.S. Federal Reserve Chair Jerome Powell and European Central Bank chief Christine Lagarde both speak on Tuesday. Both would be expected to respond, potentially with more stimulus, if the outbreak escalates.
"A slowing infection rate, and the assumption that global central banks will step in to provide liquidity when needed, has allowed the coin toss of the market's mood to come up positive," Spreadex analyst Connor Campbell said.
Shares of Just Eat (LON:JE) Takeaway.com (L:JETJ), the company formed by Dutch online service Takeaway's acquisition of British food deliverer Just Eat, gained 5%.