U.K. Stocks Climb on U.S. GDP Gain; Tesco, Carnival Rise
U.K. stocks rose to a three-week high, with the benchmark FTSE 100 Index posting the biggest weekly gain in five months, as data showed the U.S. economy grew in the third quarter by the fastest pace since 2011.
Tesco Plc (TSCO) climbed 2.6 percent, sending a gauge of London-listed retailers to its biggest two-day advance in almost four months. Carnival Corp. (CCL) gained 3.3 percent as Credit Suisse Group AG advised buying the shares. BAE Systems (BA/) Plc tumbled the most in 15 months after saying the United Arab Emirates stopped talks to buy Eurofighter Typhoon combat jets.
The FTSE 100 added 0.3 percent to 6,606.58 at the close, rallying for a third day that marked the longest winning streak in a month. The gauge jumped 2.6 percent this week as the Federal Reserve said it will slow the pace of bond purchases, signaling confidence the U.S. economic recovery is on track. The measure has risen 12 percent this year. The broader FTSE All-Share Index climbed 0.3 percent today and Ireland’s ISEQ Index increased 0.8 percent.
U.S. gross domestic product climbed at a 4.1 percent annualized rate in the quarter ended September, up from a previous estimate of 3.6 percent, Commerce Department figures showed. The median forecast of 72 economists surveyed by Bloomberg projected a 3.6 percent pace.
The volume of shares changing hands on the companies listed in the index was 47 percent higher than the 30-day average, according to data compiled by Bloomberg.
A gauge of U.K. consumer confidence unexpectedly fell for a third month in December. An index from GfK NOP Ltd. dropped 1 point from November to minus 13, the London-based research group said. The median forecast of 24 economists in a Bloomberg News survey was for a 1-point increase to minus 11.
Tesco rose 2.6 percent to 332.2 pence. The FTSE 350 Retail Index climbed 1.1 percent, taking its two-day increase to 2.5 percent.
Carnival (CCL) advanced 3.3 percent to 2,389 pence, its highest price in almost three months. Credit Suisse raised the world’s largest cruise operator to outperform from neutral, saying the company is taking several steps to transform the business after a series of operational failures.
BAE Systems Plc fell 4.5 percent to 422.1 pence, its biggest drop since September 2012, after saying talks to sell the Eurofighter Typhoon combat jet to the U.A.E have ended and that negotiations with Saudi Arabia are dragging out.
To contact the reporter on this story: Corinne Gretler in Zurich at firstname.lastname@example.org
To contact the editor responsible for this story: Cecile Vannucci at email@example.com