U.K. equities climbed for a second day, their first back-to-back advances since mid-August, with Micro Focus International Plc jumping to a record.
Shares of the technology company rallied 15 percent as Hewlett Packard Enterprise Co. is combining some software assets with it. Dixons Carphone Plc gained 4 percent after reporting a sales increase and saying it sees no detectable impact of the Brexit vote on consumer behavior in the U.K. Airlines rose, with IAG SA and EasyJet Plc climbing more than 3.7 percent, as industry executives concluded the fallout from referendum on traffic will be manageable. Pearson Plc sank 7.7 percent after U.S. peer John Wiley & Sons Inc. posted results that missed estimates.
The FTSE 100 Index rose 0.2 percent at the close of trading in London and rallied as much as 0.6 percent. The FTSE 250 Index of small-cap shares climbed 0.7 percent to its highest level since June 2015, while the FTSE Small Capitalisation Index Ex Investment Trusts rose 0.4 percent to a fresh record. The regional Stoxx Europe 600 Index reversed gains and closed down 0.3 percent as European Central Bank President Mario Draghi played down the need to commit to addition stimulus.