U.K. stocks advanced for a second day as investors speculated that the fallout from Greece’s debt crisis can be contained and as a rebound in Chinese markets spurred gains in mining shares.
BHP Billiton Ltd. and Rio Tinto Group rose at least 1.6 percent.
The FTSE 100 Index rose 1.4 percent to 6,581.63 at the close in London, almost erasing this week’s declines after turmoil in Greece triggered a 9.5 percent slump from its record in April through Tuesday. The FTSE All-Share Index added 1.3 percent today, and Ireland’s ISEQ Index climbed 2 percent.
In China, stocks advanced in volatile trading as the government battled to restore investor confidence.
While Britain is among the fastest-growing economies in western Europe, that’s not shielding its shares from the debt wrangling in Greece and a stock rout in China. The FTSE 100 is on track to underperform European equities for the fourth straight year, and options traders are protecting against more losses.
Associated British Foods Plc led gains in the FTSE 100, adding 5.1 percent, after saying the stronger dollar shouldn’t prove too burdensome on its clothing business. Smith & Nephew Plc rallied 3 percent after Berenberg recommended buying the shares. Wm Morrison Supermarkets Plc snapped a five-day losing streak, climbing 2 percent.