UPDATE 2-New Brexit deal, Huawei reprieve boost FTSE 100


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    * FTSE 100 up 0.3%, FTSE 250 up 0.5%
    * Housebuilders, Asia-focused financial stocks gain 
    * Lloyds, Barclays rise as Tesco exits mortgage lending
    * UDG, Electrocomponents up after strong earnings
    * Builder Galliford jumps after job cuts

 (Adds company news items, updates to closing prices)
    By Muvija M and Shashwat Awasthi
    May 21 (Reuters) - The FTSE rose on Tuesday, helped by a
rally in homebuilders amid news of a proposed parliamentary vote
on a second Brexit referendum and gains in Asia-facing stocks
after the United States relaxed restrictions on China's Huawei.
    The FTSE 100  .FTSE  was up 0.3%, while the FTSE 250  .FTMC 
rose 0.5%, with builder Galliford Try leading gains after
announcing job cuts.  
    After weeks of waiting for significant updates on Brexit,
investors welcomed a "new deal" for Britain's departure from the
European Union set out by Prime Minister Theresa May, which
offered the prospect of a possible second referendum on the
agreement.  urn:newsml:reuters.com:*:nL5N22X5EK 
    That thrust housebuilders  .FTNMX3720  1.2% higher, their
biggest one-day rise in a month. Persimmon  PSN.L  and Taylor
Wimpey  TW.L  were among top gainers on the main index. 
    Heavyweights HSBC  HSBA.L , Prudential  PRU.L  and Standard
Chartered  STAN.L  also offered support as markets hoped that
trade tensions between Washington and Beijing would ease after
the United States eased restrictions on telecom giant Huawei.
    "While it's a small measure, it does perhaps symbolise that
there might be a reverse gear from the current slide to what
could well turn into a full-blown trade war," CMC Markets
analyst Michael Hewson said. 
    Shares of Lloyds  LLOY.L  and Barclays  BARC.L  gained as
Tesco's  TSCO.L  decision to stop mortgage lending raised the
prospect of reduced pressure on margins, due to lesser
competition.  urn:newsml:reuters.com:*:nL5N22X10R
    Keeping a lid on gains were exporter stocks that weakened as
sterling strengthened after May's latest proposals.  urn:newsml:reuters.com:*:nL5N22X5HK
    On the FTSE 250, Galliford Try  GFRD.L  jumped 15.3% on its
best day in over a decade after the company said it would cut up
to 350 jobs as its construction business focuses on its core
strengths, bringing hopes of improved margins.  urn:newsml:reuters.com:*:nL4N22X1O3
    Galliford's update "should be taken well because there are
no further incremental contract issues, and because part of the
exceptional cost identified in April has a payback through
future cost reduction," Liberum analysts said.
    Britain's largest industrial distribution firm
Electrocomponents  ECM.L  rose 7.8% to a seven-month high after
reporting profit ahead of market expectations.  urn:newsml:reuters.com:*:nL4N22X23R 
    UDG Healthcare  UDG.L  scaled a more than eight-month high
with a 6.8% rise, after the company raised its 2019 adjusted
profit forecast.  urn:newsml:reuters.com:*:nL4N22X206
    Metro Bank  MTRO.L , which has seen its shares hammered
after disclosing an accounting error, advanced 7.5%. The
lender's annual meeting results showed it had escaped a
threatened major investor challenge on Tuesday, though there
were sizeable votes against several of its top directors.
    Keeping a lid on gains among midcaps was Entertainment One
 ETO.L , the maker of children's TV show Peppa Pig, that slumped
11% after missing estimates for revenue as well as Royal Mail
 RMG.L , which slipped 9.2% ahead of earnings report.

 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Keith
Weir and Gareth Jones)
 ((Shashwat.Awasthi@thomsonreuters.com; within U.S.+1 646 223
3403; outside U.S. +91 80 6749 3403; Reuters Messaging:
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 UK stock report      .L     
 FTSE index:          0#.FTS6  
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:  
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC  
 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC  
 Market digest:       .AD.L           Top 10 by vol:      .AV.L  
 Top price gainers:   .NG.L           Top % gainers:      .PG.L  
 Top price losers:    .NL.L           Top % losers:       .PL.L  
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 UK hot stocks:      [HOT and GB]     Wall Street:           .N 
 Gilts report:        GB/             Euro bond report  GVD/EUR 
 Pan European stock report:  .EU 
 Tokyo stocks:        .T              HK stocks:            .HK 
 Sterling report:     GBP/            Dollar report:       USD/ 
 * For company prices, click on - *
 Company directory:   UKEQ           By sector:           FTAX  
 * For pan-European market data, click on - *
 European Equities speed guide................  EUR/EQUITY  
 FTSE Eurotop 300 index...........................  .FTEU3  
 DJ STOXX index...................................  .STOXX  
 Top 10 STOXX sectors........................  .PGL.STOXXS  
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES  
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S  
 Top 25 European pct gainers....................  .PG.PEUR  
 Top 25 European pct losers.....................  .PL.PEUR ))

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