Nov. 5 (Bloomberg) -- The U.K.’s FTSE 100 Index rose for a second day, rebounding in afternoon trade after better-than-expected employment figures in the U.S. helped offset declines in Cable & Wireless Plc and Vedanta Resources Plc.

Tesco Plc climbed as Belgium’s Delhaize Group, which owns a supermarket chain in the U.S., raised its forecast for the year. Autonomy Plc, the U.K.’s second-biggest software maker, gained more than 3 percent as Germany’s software AG raised its 2009 profit estimates. Cable & Wireless Plc led declining shares, slumping the most since May, after reporting sales that missed analysts’ estimates. Vedanta Resources Plc lost 2.1 percent after posting lower first-half profit.

The benchmark FTSE 100 Index added 17.75, or 0.4 percent, to 5,125.64, after earlier falling as much as 1.4 percent. The FTSE All-Share Index added 0.3 percent, while Ireland’s ISEQ Index gained 1.4 percent.

“When it comes to the fate of shares, it still seems to be all about the U.S.,” said London-based Tim Hughes, head of sales trading at IG Index. “There is still the nagging feeling that a period of consolidation at best could be the most likely outcome from here as the markets wait for economies to catch up.”

The FTSE 100, which last week capped its worst weekly decline since an eight-month rally started in March, has still rallied 46 percent since its low of the year as investors speculated the worst recession since World War II is easing.

A report today showed fewer Americans filed claims for unemployment benefits last week than forecast, a sign job losses are slowing as the economy begins to recover. Separate figures showed worker productivity rose by the most in six years.

Interest Rates

The Bank of England today raised its bond-purchase plan by 25 billion pounds ($41 billion) as policy makers try to shore up the British economy. The central bank also maintained its key interest rate at a record low of 0.5 percent.

Tesco, Europe’s largest retailer, climbed 2.4 percent to 418.7 pence as Delhaize, the Belgian owner of the Food Lion supermarket chain in the U.S., reported profit that rose more than analysts’ estimates and raised its forecast for the year.

Autonomy gained 3.3 percent to 1,394 pence as Software AG, Germany’s second-largest software maker, raised full- year targets for revenue and profit margins.

Cable & Wireless, which today announced plans to separate its two main units into individual companies, dropped 6.2 percent to 138.9 pence.

The U.K.’s second-biggest phone company today posted a 13 percent rise in first-half sales to 1.86 billion pounds, missing the 1.93 billion-pound average estimate in a Bloomberg Survey of analysts.

Vedanta, India’s largest copper producer, lost 2.1 percent to 2,242 pence. The company reported a decline in first-half profit to $188.2 million as commodity prices fell and costs increased. Earnings per share of 61.4 cents missed the 67-cent median of three analysts’ estimates compiled by Bloomberg, while sales dropped 25 percent.

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

Invensys Plc (ISYS LN) fell 9.3 pence, or 3.1 percent, to 290.1 after reporting sales that missed some analysts’ estimates. The British maker of controls for Whirlpool Inc. washing machines posted first-half revenue of 1.07 billion pounds. That fell short of the 1.23 billion pounds predicted by Societe Generale.

ITV Plc (ITV LN) jumped 4.27 pence, or 9.6 percent, to 48.8. The U.K.’s biggest private television company predicted advertising sales to rise in December by 4 percent and said the overall market is “stabilizing.” That followed a decline of 1 percent in November and a drop of 3 percent in October.

Segro Plc (SGRO LN) fell 5.6 pence, or 1.6 percent, to 338.7. The U.K.’s largest owner of business parks and warehouses said that the vacancy rate for its properties was 14 percent at the end of September, following the acquisition of Brixton Plc. The company also said enquiries about new space fell during the third quarter.

Unilever (ULVR LN) declined 35 pence, or 1.9 percent, to 1,794. The world’s second-largest consumer products company said it expects additional costs related to the purchase of a Sara Lee Corp. unit. Restructuring expenses for next year will be above the company’s previous guidance, Chief Financial Officer Jim Lawrence said on a call with analysts today.

Whitbread Plc (WTB LN) sank 55 pence, or 4.3 percent, to 1,234 after Citigroup Inc. placed 4.6 million shares for an institutional seller that were priced in a range of 1,245 pence to 1,255 pence apiece, according to the terms obtained by Bloomberg News.

To contact the reporters on this story: Sarah Jones in London at sjones35@bloomberg.net.

Last Updated: November 5, 2009 12:13 EST