U.K. Stocks Rise; Mid-Cap Shares Briefly Erase Post-Brexit Dropby
U.K. stocks rose, with mid-cap companies briefly erasing their losses following the country’s vote to leave the European Union.
The FTSE 250 Index climbed as much as 1.7 percent intraday, before closing 1.2 percent higher, the most since July 11, after a report showing the U.K. economy grew faster than projected in the second quarter. The gauge of companies with more domestic exposure recouped its post-Brexit losses intraday, before closing slightly below its level on the day of the referendum, while a plunging pound helped the FTSE 100 Index erase its declines in just four days after the vote.
While growth in Britain accelerated to 0.6 percent in the second quarter, beating the median economist forecast, the pickup may mark the end of more than three years of uninterrupted growth. Recent surveys suggest the Brexit vote delivered an immediate blow to business and consumer sentiment, while economists forecast a contraction in the current and next quarter, putting Britain into its first recession since 2009.
The FTSE 100 rose 0.4 percent today. Homebuilder Taylor Wimpey Plc climbed 6.7 percent after saying pretax profit rose in the first half of the year. Peers Barratt Developments Plc and Persimmon Plc added at least 5.9 percent. Property website operator Rightmove Plc jumped 8.7 percent after posting better-than-forecast revenue and signaling that trading in July has been strong.
ITV Plc rallied 6.8 percent after the broadcaster posted an increase in first-half sales, boosted by the Euro 2016 soccer tournament and its growing studio production business.