News: RIO UPDATE 2-Miners, banks lift FTSE 100 to its best session in two months; Vectura Group...

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• Vectura Group surges on takeover offer from Philip Morris
• UK economy grows slower-than-expected in May from April
• FTSE 100 up 1.3%, FTSE 250 adds 1.1%

(Updates to close)

London's FTSE 100 marked its best session in over two months on Friday, boosted by gains in mining and bank stocks, but ended the week flat on signs that the pace of economic recovery could be slower than expected.

The blue-chip FTSE 100 .FTSE ended 1.3% up, powered by base miners .FTNMX551020 and banks .FTNMX301010 up 4.1% and 1.8% respectively.

Miners including BHP Group BHPB.L , Rio Tinto RIO.L , Glencore GLEN.L , Anglo American AAL.L were among the top gainers.

Britain's economy grew by a slower-than-expected 0.8% in May compared with April, official data showed. A Reuters poll of economists had pointed to a month-on-month gross domestic product growth of 1.5%.

"Overall, the message is one of cautious optimism. There will be some who will see May's figures as disappointing, but recovery won't go in a straight line, there will be peaks and troughs and yes maybe the odd U-turn. But the economy is growing and consumers are spending," said Danni Hewson, financial analyst at AJ Bell.

The FTSE 100, which has gained nearly 10.2% so far this year on availability of cheap funds, ended the week flat as a jump in coronavirus infections raised concerns about the pace of economic recovery.

"Its very disappointing that the spread of the Delta variant of the COVID-19 is accelerating in some countries, but it's still not likely to lead to an extended lockdown that we saw earlier in the pandemic," said Edward Moya, senior analyst at Oanda.

"So there's this belief that even though its a massive road bump, but these economies will be able to get through it."

The domestically focussed mid-cap index .FTMC was up 1.1%. Travel stocks .FTNMX405010 gained 1% after three straight sessions of declines, as Britain plans to scrap quarantine for fully-vaccinated arrivals in the coming weeks.

Among stocks, Vectura Group VEC.L jumped 14% to the top of the mid-cap index after cigarette maker Philip Morris PM.N said it would buy the pharmaceutical company in a deal valuing it at 1.05 billion pounds ($1.44 billion).

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FTSE 100 ended the week flat as virus fears weigh	https://tmsnrt.rs/3hXoZlL 

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