Stimulus hopes help Britain's FTSE bounce after holiday
* FTSE 100 rises 1.5 percent
* Banks lead after central banks reaffirm supportive stance
* Tui surges on Club Med deal readacross
* Glaxo benefits from Deutsche upgrade
By Alistair Smout
LONDON, May 28 (Reuters) - Britain's top share index rose on Tuesday, buoyed by the prospect of continued monetary easing and catching up with Europe after a public holiday on Monday saw it miss out on the previous session's gains.
Banks led Britain's FTSE higher, benefitting from calmed nerves over monetary stimulus programmes after European and Japanese central bankers renewed their commitment to continued supportive policies. Banks had been among Europe's top gainers on Monday.
The FTSE 100 was up 100.78 points, or 1.5 percent, at 6,755.12 by 0752 GMT, with financials adding 24 points to the index.
The index set a fresh 13 year high last week at 6,875.62 before a 2.7 percent drop in just two days after the U.S. Federal Reserve said it was considering exit strategies from its own stimulus programme.
"The possibility of the U.S. quantitative easing to an end has been brought to the table, but it seems likely that European central banks are possibly a short period away from introducing another stimulus package," said Alastair McCaig, market analyst at IG Index.
"These packages may not be as big in size but would still help sentiment."
Although banks led the way with a 2.1 percent rise, gains were broad-based, with just five stocks in negative territory.
Tui Travel led FTSE 100 gainers with a 4.3 percent jump, with traders citing a positive readacross from a planned takeover of Club Mediterranee by the French company's top shareholders.
Defensive stocks were also popular, with GlaxoSmithKline contributing 9 points to the index's advance.
The usually steady pharmaceutical rose 2.7 percent to be among the FTSE's top gainers after an upgrade to "buy" from "hold" by Deutsche Bank, which said it offered good value after underperforming peers.
"We believe consensus forecasts are now realistic and that the balance of risk/reward for regulatory decisions and pipeline news has swung to positive," Deutsche Bank analysts said. (Additional reporting by David Brett; Editing by Catherine Evans)
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