U.K. Stocks Rise to Six-Week High as Miners Gain on China
Fresnillo Plc (FRES) led precious-metal producers higher. A gauge of mining stocks jumped 1.9 percent as concern about slowing demand from the world’s second-largest economy eased. Invensys Plc (ISYS) gained 1.3 percent after a report that General Electric Co. may bid for the company. Tullow Oil Plc (TLW) fell after Societe Generale SA downgraded its rating of the shares.
The FTSE 100 advanced 57.25 points, or 0.9 percent, to 6,602.19 at 8:50 a.m. in London, reaching its highest price since May 31. The gauge climbed 2.7 percent last week, and has rallied 12 percent so far this year. The FTSE All-Share Index also increased 0.9 percent today, while Ireland’s ISEQ Index added 0.5 percent.
China’s second-quarter gross domestic product rose 7.5 percent from a year earlier, according to the National Bureau of Statistics in Beijing. That matched the median forecast in a Bloomberg News survey. The economy expanded at a 7.7 percent pace in the first quarter.
The country’s Finance Minister Lou Jiwei said last week that while the government in March set a 2013 growth target of 7.5 percent, he is confident of achieving a 7 percent rate.
Stocks rallied last week as Federal Reserve Chairman Ben S. Bernanke said the central bank’s policy would remain “highly accommodative” and the Bank of Japan indicated it will maintain stimulus. The European Central Bank and Bank of England earlier said they will keep key interest rates low for the foreseeable future.
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