U.K. Stocks Advance After IMF Capital Boost Talk; Miners Gain
U.K. stocks advanced, with the FTSE 100 Index (UKX) headed for its longest streak of weekly gains since April, after International Monetary Fund members discussed boosting its capital to help end Europe’s debt crisis.
The benchmark FTSE 100 Index climbed 62.98, or 1.2 percent, to 5,466.36 at the close in London. The gauge rose for the third week, its longest streak of weekly gains since April. Even then, the measure is 10 percent lower than this year’s peak on Feb. 8 amid concern that Europe’s sovereign-debt crisis will deepen. The FTSE All-Share Index added 1.1 percent and Ireland’s ISEQ increased 1.6 percent today.
Nations from China to Brazil are considering increasing the IMF’s lending resources to help stem the euro area’s debt crisis, Group of 20 and IMF officials said.
Policy makers have discussed expanding the IMF’s firepower as part of a global G-20 agreement next month in Cannes, France, according to three officials, who declined to be named because the discussions are not public. The talks are at a preliminary stage as potential contributors wait to see what measures the Europeans take to end the debt turmoil at their Oct. 23 summit, the officials said.
Stocks extended gains today after a report showed U.S. retail sales rose more than forecast in September, easing concern that slumping confidence and scant hiring will derail the biggest part of the economy.
Fresnillo climbed 1.9 percent to 1,660 pence as silver prices rose. Copper, nickel and tin also gained. Vedanta Resources Plc (VED) jumped 1.2 percent to 1,213 pence. Kazakhmys Plc (KAZ) increased 2.5 percent to 900 pence. An index of basic resources shares in the Stoxx Europe 600 rallied 1.4 percent.
Ferrexpo Plc (FXPO), a producer of iron ore in Ukraine, soared 7.3 percent to 339 pence. UBS AG raised its rating on the stock “buy” from “neutral,” citing a “positive” price outlook for the raw material.
Hunting Plc (HTG), a holding company for oil and gas providers, surged 5.4 percent to 643 pence. Goldman Sachs Group Inc. initiated the stock with a “buy” recommendation.
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