Nov. 3 (Bloomberg) -- U.K. stocks rose for a fifth day, the longest winning streak this year, as falling money-market rates ignited hopes the financial crisis is easing. Xstrata Plc and BHP Billiton Ltd. gained as metals prices rallied.

The FTSE 100 Index increased 65.94, or 1.5 percent, to 4,443.28. The FTSE All-Share Index added 1.6 percent and Ireland's ISEQ Index declined 0.6 percent.

The benchmark index extended last week's 13 percent advance as money markets began to unfreeze and central banks from the U.S. to Japan cut borrowing costs to revive economic growth. The FTSE 100 has tumbled 31 percent this year, its worst annual drop since at least 1984, as a jump in U.S. mortgage defaults saddled global banks with more than $685 billion of losses and caused credit markets to lock up.

``It's not just rates, it's all the other liquidity measures that central banks and governments have started putting in place that are really starting to stop the slide in money and credit markets,'' said Simon Webber, who manages $200 million at Schroder Investment Management in London. ``We are watching the credit markets but I think there is a good chance equities have tested the bottom,'' he told Bloomberg Television.

The London interbank offered rate, or Libor, that banks charge for three-month loans in dollars dropped 17 basis points to 2.86 percent, the lowest level since the collapse of Lehman Brothers Holdings Inc. on Sept. 15. It was the rate's 16th straight decline, according to British Bankers' Association data.

Xstrata, the world's fourth-biggest copper producer, rallied 10 percent to 1,164 pence. BHP Billiton, the world's largest mining company, increased 2.1 percent to 1,075 pence. Rio Tinto Group, the third-biggest, added 1.3 percent to 2,900 pence.

Copper for delivery in three months rallied as much as 4 percent to $4,264 a metric ton in London. Zinc, tin and aluminum prices also rose.

Lloyds TSB Profit

Lloyds TSB Group Plc closed unchanged at 197.8 pence after falling as much as 4.6 percent. The U.K. bank that agreed to buy HBOS Plc in a rescue arranged by the government said profit in the first nine months dropped by 270 million pounds ($442 million) on credit-related writedowns.

Lloyds TSB agreed to buy HBOS in a deal valued at 6.3 billion pounds as of Oct. 31 as the government waived competition concerns and allowed a takeover creating a bank with a 28 percent share of Britain's mortgage market. The banks are seeking to raise 17 billion pounds in a share sale underwritten by the government, which may own as 43 percent of the combined company.

Vodafone Group Plc slid on speculation the world's largest mobile-phone company is guiding analysts' estimates lower. The stock, which accounts for about 5.6 percent of the benchmark index by market weighting, slumped 2.2 percent to 116.5 pence.

``The Vodafone fall today is just due to a conversation the company had with one analyst whose numbers were a bit high. It all looks a bit overblown,'' said Jesper Kruger, a fund manager in Copenhagen at ATP, which has about $64 billion.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. companies:

British Sky Broadcasting Group Plc (BSY LN) advanced 12 pence, or 3.2 percent, to 390.5. The U.K.'s biggest pay- television provider has made a 450 million pounds ($725 million) bid to buy Tiscali SpA's U.K. business, the Sunday Times reported, without saying where it got the information.

Chloride Group (CHLD LN) climbed 15.25 pence, or 12 percent, to 147.25. The U.K.'s largest maker of backup power equipment said first-half profit rose 37 percent on increasing demand in Europe, Russia and Asia.

ReneSola Ltd. (SOLA LN) soared 50.25 pence, or 26 percent, to 242.5. The world's largest recycler of scrap wafers used in solar panels said it secured extra credit with two of China's largest banks and raised its third-quarter production forecast.

Tesco Plc (TSCO LN) lost 6.7 pence, or 2 percent, to 332.7. Britain's biggest retailer was cut to ``sell' from ``hold'' at Societe Generale SA which said Tesco can no longer be perceived as a ``safe haven'' stock.

U.K. Coal Plc (UKC LN) added 7.5 pence, or 7.8 percent, to 104. The nation's largest producer of the fuel rose in London trading after Goodweather Holdings Ltd. increased its stake in the company to 28 percent.

WSP Group Plc (WSH LN) increased 6 pence, or 2.1 percent, to 294.5. The engineering company that helped design New York's Freedom Tower said it is confident full-year results will meet its forecasts.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net; Jakob Lindstroem in Stockholm at jlindstroem@bloomberg.net.

Last Updated: November 3, 2008 12:22 EST