U.K. stocks advanced, extending the benchmark FTSE 100 Index (UKX)’s longest streak of weekly gains this year, as China and Japan showed signs of stronger growth and European leaders edged toward a strategy to end the debt crisis.
Rio Tinto Group jumped 7.1 percent and BHP Billiton Ltd. (BHP) gained 5.2 percent as metal prices rose in London. Kesa Electricals Plc (KESA) soared 17 percent after the Daily Telegraph reported that the retailer may delist from the London Stock Exchange.
The FTSE 100 added 59.41, or 1.1 percent, to 5,548.06 at the close in London. The measure has risen for the past four weeks, for its longest weekly gaining streak in 2011. The gauge has still tumbled 8.9 percent from this year’s highest level on Feb. 8 amid concern that the debt crisis is worsening and the global economy is faltering. The broader FTSE All-Share Index rose 1.3 percent today, while Ireland’s ISEQ Index climbed 2.4 percent.
“All eyes are very much on European leaders’ attempts to find a workable solution to the ongoing debt crisis and with encouraging signs of progress emerging over the weekend,” said Stan Shamu, a market strategist at IG Markets in Melbourne.
European leaders outlined plans to aid banks and ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund yesterday in their 13th crisis-management summit in 21 months. The complete blueprint will take shape by Oct. 26, when they meet again.
Growth in Asia
Reports today showed China’s manufacturing may grow in October for the first time in four months and Japanese exports increased more than economists’ estimates in September.
Rio Tinto rose 7.1 percent to 3,373.5 pence. BHP Billiton advanced 5.2 percent to 1,996 pence. Copper, lead, nickel, tin and zinc prices climbed on the London Metal Exchange.
Alterian Plc (ALN) rallied 28 percent to 81 pence after SDL Plc said it offered 80 pence a share on Oct. 21 for the company. The board of Alterian, the database technology company, rejected the proposal.
Kesa Electricals Plc soared 17 percent to 110.6 pence after the Daily Telegraph reported that the retailer may delist from the London Stock Exchange after selling Comet unit.
Intercontinental Hotels Group Plc (IHG) advanced 0.8 percent to 1,124 pence after saying same-store revenue per available room in the U.S. increased 8 percent in the third quarter.
McBride Plc (MCB) rose 8.1 percent to 126.75 pence as adjusted sales at constant currency increased about 2 percent in the period from July 1 to Oct. 23.
To contact the reporter on this story: Adam Haigh in London at email@example.com
To contact the editor responsible for this story: Andrew Rummer at firstname.lastname@example.org