U.K. stocks advanced for a second day, with the benchmark FTSE 100 Index rebounding from its first weekly loss in more than a month, as investors weighed Chinese industrial-output data.
Lloyds Banking Group Plc rose 2.1 percent after HSBC Holdings Plc said the lender’s margin expansion is continuing. Shire Plc added 0.9 percent after agreeing to buy ViroPharma Inc. for about $4.2 billion. British Sky Broadcasting Group Plc slumped the most since October 2008 after BT Group Plc won the rights to two European soccer contests.
The FTSE 100 climbed 19.95 points, or 0.3 percent, to 6,728.37 at the close in London. The gauge fell 0.4 percent last week as European Central Bank President Mario Draghi announced an interest-rate cut, signaling a worsening regional economy. The broader FTSE All-Share Index increased 0.3 percent today, while Ireland’s ISEQ Index rose 0.7 percent.
“Stocks are inching up a touch as investors take heart in China’s industrial output reading which showed growth unexpectedly increased,” Ishaq Siddiqi, a London-based market strategist at ETX Capital, wrote in a note. “At the same time however, Fed tapering woes are capping some of the enthusiasm to build risk exposure.”
In China, industrial output jumped 10.3 percent in October from a year earlier, the National Bureau of Statistics said Nov. 9. That was higher than September growth of 10.2 percent and the 10 percent median projection in a Bloomberg News survey.
President Xi Jinping and top Communist Party leaders have gathered in Beijing for a meeting known as the third plenum to outline a blueprint to sustain growth and drive urbanization in the world’s second-biggest economy. The meeting of about 370 officials will conclude tomorrow.
Lloyds rose 2.1 percent to 76.77 pence. HSBC said that a momentum in margins should continue in 2014, fueled by improving liability spreads. Analysts’ estimates for no revenue growth look too pessimistic, HSBC’s Peter Toeman and Robin Down wrote.
Shire climbed 0.9 percent to 2,822 pence. The purchase of ViroPharma will give Shire access to Cinryze, a medicine for the inflammatory condition hereditary angioedema, which complements Shire’s own Firazyr for the same condition. The Dublin-based drugmaker will pay $50 a share in cash, 27 percent more than ViroPharma’s price on Nov. 8.
Schroders Plc advanced 4.3 percent to 2,542 pence. Numis Securities Ltd. raised the money manager to add from hold, saying there are potential gains in the fourth quarter from performance fees and flows into European equities.
Lonmin Plc rallied 3.9 percent to 340.9 pence. The world’s third-largest platinum producer returned to profit after output of the metal exceeded the company’s forecast and cost increases were below South African inflation.
BSkyB slumped 11 percent to 829 pence. BT, which started three sports channels in August, said Nov. 9 it agreed to pay $1.4 billion for exclusive live-broadcast rights for the UEFA Champions League and the UEFA Europa League soccer games for three years. BSkyB’s Sky Sports channels have aired top U.K. soccer games since the Premier League’s inception in 1992.
RSA Insurance Group Plc plunged 11 percent to 108.1 pence, its largest drop since Feb. 20. Britain’s biggest non-life insurer by market value suspended three top executives at its Irish unit and said 2013 results will miss analysts’ estimates.
Cobham Plc tumbled 5 percent to 270.1 pence, its lowest price since July 3. The world’s largest maker of airborne refueling equipment said sales excluding acquisitions will decline next year amid further cuts in U.S. defense spending.