U.K. Stocks Pare Gains as GlaxoSmithKline, Vodafone Drop
Commodity producers climbed after a report showed China’s imports and exports increased more than economists had predicted. Aviva Plc jumped to a two-year high after posting first-half operating profit that beat analysts’ estimates and saying that restructuring costs fell 10 percent.
The FTSE 100 Index (UKX) gained 0.88 points, or less than 0.1 percent, to 6,512.09 at 4:21 p.m. in London, paring an earlier advance of as much as 0.7 percent. The equity benchmark has rallied 8 percent from a low on June 24 as the Federal Reserve said it remains flexible on the pace of bond buying. The broader FTSE All-Share Index added 0.1 percent today, while Ireland’s ISEQ Index increased 0.9 percent.
“In the short term, there will be blips of good news on the back of the Chinese economy recovering,” Ashok Shah, investment director at London & Capital Group Ltd., told Francine Lacqua on Bloomberg Television. “Until it’s fundamentally much stronger, cyclical sectors like commodities will continue to be under tremendous pressure.”
The number of shares trading hands on FTSE 100-listed companies was 13 percent lower than the average of the past 30 days at this time of the day, data compiled by Bloomberg showed.
In China, a report from the General Administration of Customs showed that exports rose 5.1 percent last month from a year earlier, more than the 2 percent increase forecast in a Bloomberg News survey. Exports dropped 3.1 percent in June. Imports rose 10.9 percent in July.
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