U.K. Homebuilders Lead Stock Gains After Osborne's Spending Planby
Britain’s equities rose the most in a week, with homebuilders leading gains as Chancellor of the Exchequer George Osborne announced increased spending on housing and an improved economic outlook.
Taylor Wimpey Plc and Barratt Developments Plc climbed more than 3.5 percent, rallying the most in the benchmark FTSE 100 Index. Insurer St. James’s Place Plc also rose 3.5 percent, while Capita Plc, a provider of services to the public and private sectors, added 2.2 percent.
The FTSE 100 rose 1 percent at the close of trading in London, after posting its biggest two-day decline in almost two weeks. Osborne said the economy will grow 2.4 percent next year, more than forecast in July. The broader FTSE All-Share Index gained 0.9 percent, while Ireland’s ISEQ Index added 1 percent.
Amid other stocks that rose, tour operator Thomas Cook Group Plc rallied 11 percent, the most since March, after swinging to profit for the first time in five years. Ophir Energy Plc jumped 7.6 percent after people with knowledge of the matter said it has received informal takeover and merger interest from several parties.
While 90 of the FTSE 100 shares advanced, miners fell. Anglo American Plc dropped 7.7 percent, Glencore Plc declined 4 percent, and BHP Billiton Ltd. lost 1.8 percent.