U.K. Stocks Climb for a Second Day on Speculation Rout OverdoneAlan Soughley
U.K. stocks advanced for a second day, extending a rebound in line with global markets amid investor speculation that the recent share rout was overdone.
The FTSE 100 Index rose 2 percent to 5,824.28 at the close of trading in London. More than 90 of its shares climbed, mirroring gains in European equities. The benchmark gauge for U.K. stocks has fallen 6.7 percent this year, less than the regional Stoxx Europe 600 Index. The broader FTSE All-Share Index added 2 percent on Monday, while Ireland’s ISEQ Index climbed 2.9 percent.
Investors are also speculating on increased stimulus for the global economy after China’s central bank stepped up efforts to restore stability to the nation’s currency and economy, while disappointing Japanese growth data added weight to the case for more intervention.
Anglo American Plc led a gauge of U.K. miners higher with a gain of 5.1 percent, while Glencore Plc advanced 2.8 percent.
Among stocks moving on corporate news, HSBC Holdings Plc gained 1.4 percent after recommitting itself to staying based in London, ending another round of deliberations over whether to move its headquarters to Hong Kong. Reckitt Benckiser Group Plc rose 6.8 percent, the most since 2009, after the maker of Durex condoms and Nurofen painkillers reported fourth-quarter sales growth that beat analyst estimates.