U.K. Stocks Climb With Severn Trent, United UtilitiesNamitha Jagadeesh
U.K. stocks rose, helped by an increase in utilities, after Governor Mark Carney pledged that Bank of England officials won’t rush to raise interest rates.
Severn Trent Plc and United Utilities Group Plc advanced more than 1 percent each as German peer EON SE reported better-than-estimated profit. Admiral Group Plc slipped the most in more than two years after saying turnover dropped in the first half of the year. Glencore Plc fell 2.5 percent as the world’s third-biggest mining company by market value said zinc and lead production slid.
The FTSE 100 Index gained 24.26 points, or 0.4 percent, to 6,656.68 at the close in London. The benchmark gauge has fallen 3.2 percent from a June 9 high amid crises in Ukraine, Iraq and the Gaza Strip. The broader FTSE All-Share Index rose 0.4 percent today, and Ireland’s ISEQ Index advanced 0.5 percent.
Royal Dutch Shell Plc, Diageo Plc and 13 other FTSE 100 companies are trading without the right to their latest dividend today, shaving 22 points off the benchmark gauge.
In today’s Inflation Report, the BOE lowered its forecast for wage growth and said it will put more weight on earnings in its policy assessment. Data by the Office for National Statistics showed the unemployment rate fell to 6.4 percent in the three months through June from 6.5 percent in May, matching the median economist estimate in a Bloomberg News survey.
Severn Trent climbed 1.7 percent to 1,926 pence, and United Utilities gained 1.4 percent to 858.5 pence. A gauge of utilities posted the second-biggest gain among 19 industry groups in the Stoxx Europe 600 Index after EON reported first-half underlying net income of 1.53 billion euros ($2.04 billion), exceeding the 1.46 billion-euro projection of analysts surveyed by Bloomberg.
Admiral Group lost 5.5 percent to 1,371 pence. The owner of the confused.com price-comparison website said turnover, which includes total insurance premiums written and other revenue, fell 5 percent to 1.04 billion pounds ($1.75 billion) in the six months through June.
Glencore slid 2.5 percent to 365.5 pence after saying zinc production dropped 3.7 percent, while lead output declined 5.7 percent in the second quarter. Copper production of 359,100 metric tons missed Sanford C. Bernstein & Co.’s estimate of 455,000 metric tons.