U.K. Stocks Climb as Investors Await BOE Decision

U.K. stocks advanced, rebounding from yesterday’s biggest selloff in more than a week, before monetary-policy announcements from the Bank of England and the European Central Bank.

Barclays Plc (BARC) and Royal Bank of Scotland Group Plc (RBS) both snapped two days of losses, climbing more than 1 percent. EasyJet Plc (EZJ) added 1.7 percent after reporting an increase in passenger numbers for June. Taylor Wimpey Plc (TW/) rose 3.2 percent after the housebuilder increased its first-half profit margin.

The FTSE 100 Index gained 51.71 points, or 0.8 percent, to 6,281.58 at 9:17 a.m. in London, after falling 1.2 percent yesterday. The FTSE All-Share Index increased 0.8 percent today, while Ireland’s ISEQ Index added 0.4 percent.

We are seeing “tentative gains for European markets with investors gearing up for policy meetings by the Bank of England and the European Central Bank,” said Ishaq Siddiqi, market strategist at ETX Capital in London. “With no U.S. data scheduled today, attention is squarely on the policy meetings.”

Policy makers at the Bank of England are expected keep the central bank’s bond-purchase target at 375 billion pounds ($572 billion) and its key rate at 0.5 percent, according surveys of economists. BOE will announce its decision at noon in London.

The ECB will also leave its benchmark interest rate unchanged at a record low of 0.5 percent today, according to 61 of 62 forecasts in a Bloomberg survey of economists. The central bank will announce the decision at 1:45 p.m. in Frankfurt and President Mario Draghi will address the press 45 minutes later.

Stocks tumbled around the world yesterday as the Portuguese government lost the leader of its junior coalition partner, pushing the nation’s bond yields to their highest level this year.

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

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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