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. BHP Billiton Ltd. and Rio Tinto Group advanced as metals prices rallied.

The FTSE 100 Index increased 17.11, or 0.4 percent, to 4,394.45 at 12:47 p.m. in London. The FTSE All-Share Index added 0.7 percent and Ireland's ISEQ Index climbed 0.5 percent.

The benchmark index advanced for a fifth day, having gained 13 percent last week, 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 32 percent this year, poised for its worst annual drop since at least 1984, as a jump in U.S. mortgage defaults saddled global banks with more than $684 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 consecutive decline, according to British Bankers' Association data.

BHP Billiton, the world's largest mining company, increased 3 percent to 1,085 pence. Rio Tinto, the third-biggest, added 1.4 percent to 2,904 pence.

Copper for delivery in three months rallied as much as 2.7 percent to $4,210 a metric ton in London. Nickel, lead, zinc and aluminum prices also rose.

Lloyds TSB Declines

Lloyds TSB Group Plc declined 3.2 percent to 191.5 pence. The U.K. bank that agreed to buy HBOS Plc in a rescue arranged by the government said profit in the first nine months fell 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.

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 15.75 pence, or 4.2 percent, to 394.25. 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 12.5 pence, or 9.5 percent, to 144.5. 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 52.75 pence, or 27 percent, to 245. 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 13.2 pence, or 3.9 percent, to 326.2. Tesco was cut to ``sell' from ``hold'' at Societe Generale SA which said Britain's biggest retailer can no longer be perceived as a ``safe haven'' stock.

U.K. Coal Plc (UKC LN) added 7.25 pence, or 7.5 percent, to 103.75. 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 10 pence, or 3.5 percent, to 298.5. The engineering company that helped design New York's Freedom Tower said it is confident full-year results will meet its forecasts.

-- With reporting by John Dawson and Adam Haigh in London.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.

Last Updated: November 3, 2008 07:55 EST