U.K. Stocks Post Biggest Rally Since August; Rolls-Royce Surgesby
A bounce in Britain’s shares pared its weekly slump that had dragged the FTSE 100 Index to a 2012 low, mirroring gains in global equities that showed signs of respite after a turbulent week.
Rolls-Royce Holdings Plc shares surged 14 percent as investors shrugged off a 41 percent cut in the annual dividend and instead cheered restructuring efforts that ended a run of profit warnings. Miners including Anglo American Plc, Glencore Plc, BHP Billiton Plc and Rio Tinto Group Plc rallied at least 8.4 percent. Standard Chartered Plc gained from a 1998 low, while Barclays Plc rebounded from a four-year low.
The FTSE 100 Index added 3.1 percent to 5,707.6 in London, reversing yesterday’s slump and trimming this year’s decline to 8.5 percent. A gauge of volatility dropped from a 2011 high while oil prices jumped. Trading volume on the FTSE 100 Index was 3 percent higher than the 30-day average, with only six stocks falling.
The broader FTSE All-Share Index also rebounded today, rising 2.7 percent, while Ireland’s ISEQ Index increased 1 percent.