By Alexis Xydias
Oct. 8 (Bloomberg) -- U.K. stocks climbed as raw-material producers rallied on better-than-expected earnings from Alcoa Inc. in the U.S. and as metals prices advanced.
Vedanta Resources Plc jumped more than 5 percent after reporting an increase in production and as copper gained in London. Carphone Warehouse Group Plc, Europe’s largest mobile- phone and laptop retailer, rose 2 percent after it won more clients.
The benchmark FTSE 100 Index added 52.64, or 1 percent, to 5,161.54 as of 8:58 a.m. in London, its third gain this week. The FTSE All-Share Index climbed 1 percent, while Ireland’s ISEQ Index rose 1.6 percent.
The FTSE 100 has surged 47 percent since this year’s low on March 3 amid speculation the worst of a global slowdown is past. Alcoa, the largest U.S. aluminum producer and first Dow Jones Industrial Average to announce results for the three months through Sept. 30, reported an unexpected third-quarter profit yesterday and said that global consumption of the metal will climb 11 percent in the second half.
Vedanta Resources jumped 5.8 percent to 2,228 pence. The largest copper producer in India said iron-ore output in its fiscal second quarter rose 27 percent from a year earlier to 3.3 million metric tons. Production of aluminum also increased.
Antofagasta Plc, which mines for copper in Chile, rose 4.3 percent to 832 pence. Rio Tinto Group, the world’s third-largest mining company, gained 2.3 percent to 2,800 pence.
Copper for delivery in three months climbed as much as 2.5 percent to $6,250 a metric ton in London. Nickel, lead, zinc and aluminum prices also rallied.
Carphone Warehouse added 2 percent to 209 pence. The company said its TalkTalk unit gained 15,000 net new broadband subscribers in the second quarter while its Best Buy Europe connections rose 2 percent from a year earlier.
To contact the reporters on this story: Alexis Xydias in London at axydias@bloomberg.net.
Last Updated: October 8, 2009 04:07 EDT
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