U.K. Stocks Jump After 10-Day Losing Streak as China Cuts RateBy
RSA rallies after Zurich Insurance makes $8.8 billion offer
FTSE 100 RSI shows index was most oversold since '87 on Monday
A rebound in commodity producers accelerated after China cut interest rates, spurring the best day since 2011 for U.K. stocks after a 10-day slump.
BHP Billiton Ltd. jumped 5.5 percent after saying it will raise its dividend. The world’s biggest miner slid the most since 2008 yesterday. Antofagasta Plc and Glencore Plc rose 4.6 percent or more. RSA Insurance Group Plc advanced 3.9 percent after Zurich Insurance Group AG said it plans to buy the company. Randgold Resources Ltd. slid 3.5 percent, following gold prices lower.
The FTSE 100 Index gained 3.1 percent at the close in London, extending its advance after China’s central bank stepped up efforts to cushion a stock market rout and an economic slowdown. After the longest losing streak since 2003 sent the FTSE 100 to a two-year low yesterday, a technical indicator showed the gauge yesterday reached its most oversold level since 1987.
China’s currency devaluation two weeks ago triggered a selloff in stocks around the world, culminating in yesterday’s worst slump in several years for markets from Asia to Europe and the U.S. Miners and energy producers were among shares that performed the worst in industry groups, dragging the FTSE 100 lower before today’s reversal.
The broader FTSE All-Share Index rose 3.2 percent and Ireland’s ISEQ Index climbed 4.3 percent on Tuesday.
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