U.K. stocks advanced, rebounding from a two-week low, as investors weighed conflicting U.S. data to assess the pace of the recovery in the world’s biggest economy and the outlook for stimulus.
Euromoney Institutional Investor Plc (ERM) rallied 9.3 percent after forecasting that annual pretax profit and sales will increase. Barclays Plc (BARC) and Royal Bank of Scotland Group Plc (RBS) rose 1.9 percent. Premier Foods Plc (PFD) lost 2.9 percent after its chief financial officer resigned. Amec Plc (AMEC) slipped 1.5 percent as UBS AG downgraded the oilfield-services company.
The FTSE 100 added 14.09 points, or 0.2 percent, to 6,571.46 at the close of trading in London. The gauge has risen 2.5 percent in September, extending its gains this quarter to 5.7 percent, as the Federal Reserve refrained from reducing its monthly asset purchases until its sees more evidence of sustained improvement in the U.S. economy. The FTSE 100 has rallied 11 percent so far in 2013.
“It’s difficult right now to have a precise idea about what the Fed should do,” Yannick Naud, a portfolio manager at Glendevon King Ltd. in London, told Francine Lacqua on Bloomberg Television. “Members of the Federal Reserve say different things to different people. The Fed needs to be more like a storyteller to make sure that every analyst has a sense of what will happen, without committing itself to specific data.”
The FTSE All-Share Index gained 0.3 percent today. Ireland’s ISEQ Index increased 0.4 percent, extending its fifth straight quarterly advance.
U.S. consumer confidence worsened in September more than economists had predicted from the previous month, according to a Conference Board report today. The S&P/Case-Shiller’s index of house prices in 20 U.S. cities increased in July from a year earlier at the fastest pace since February 2006, matching the median estimate in a Bloomberg survey.
Euromoney jumped 9.3 percent to 1,149 pence, its biggest increase since July 2011, after forecasting that sales will grow 2 percent in its financial year ending this month. The business-information provider also said adjusted profit before tax will climb to 114 million pounds ($182 million) from 107 million pounds in the preceding financial year.
Barclays and RBS each rose 1.9 percent, to 271.45 pence and 367.9 pence respectively.
Premier Foods declined 2.9 percent to 143.25 pence after saying Alastair Murray will replace Mark Moran as CFO from Sept. 30. Moran told Chief Executive Officer Gavin Darby that he would not commit to the role for the next three years, the company said in a statement. Premier Foods makes Hovis bread and Sharwood’s range of cooking sauces.
Amec slipped 1.5 percent to 1,091 pence as UBS lowered its rating on the stock to neutral from buy. The brokerage cut its sales forecasts through to 2015 because oil customers have taken longer to award engineering and design projects.
A gauge of London-listed mining stocks declined for a third day, trimming its biggest quarterly gain since the three months through December 2010. Vedanta Resources Plc declined 1 percent to 1,111 pence, while Anglo American Plc (AAL) declined 1.8 percent to 1,545.5 pence as base metals dropped on the London Metal Exchange.
Carnival Corp. (CCL) plunged 5.6 percent to 2,258 pence in London trading after the cruise-ship operator said it may post a loss. The company forecast fourth-quarter results ranging from a profit of 3 cents a share to a loss of three cents. Analysts surveyed by Bloomberg had predicted income of 9 cents.
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