U.K. Stocks Erase Drops, Rising for 2nd Day Amid Retailer Gainsby
British equities reversed losses, posting their first back-to-back gains in more than a week, amid advances in retailers.
Tesco Plc, Wm Morrison Supermarkets Plc and Next Plc rose more than 2.7 percent as European retailers climbed the most among industry groups. Burberry Group Plc rose 4.2 percent, rebounding from its biggest slump in a year. Foxtons Group Plc gained 2.9 percent after saying it expects full-year revenue to be in line with market expectations. Housebuilders Persimmon Plc and Taylor Wimpey Plc climbed more than 2.5 percent.
The FTSE 100 Index advanced 0.3 percent, reversing a decline of as much as 0.3 percent. The gauge has dropped 1.1 percent from its high last week, failing to maintain a record level reached Oct. 11, and coming closer to its 50-day moving average.
The tumbling pound has helped the FTSE 100 become this year’s second-best performer among developed markets, even as uncertainty remains about the form that Brexit will take and its consequences. A report on Wednesday showed the U.K. labor market is losing momentum, with signs of growing pressure on household incomes as inflation picks up. Strategists surveyed by Bloomberg see the index falling 4.9 percent to 6,678 by the end of the year, according to the average of nine forecasts.
Among the stocks sliding on Wednesday, Reckitt Benckiser Group Plc dropped 2.6 percent after its sales missed estimates. Travis Perkins Plc lost 4.4 percent after saying it sees annual adjusted profit below consensus. Laird Plc slumped a record 49 percent after the supplier of parts to Apple Inc. pared its earnings outlook. Software company Imagination Technologies Group Plc dropped 6.3 percent, the most since July.
The FTSE 250 Index of mid-cap shares gained 0.3 percent, while the FTSE Small Cap excluding investment trusts index fell as much. The regional Stoxx Europe 600 Index advanced 0.3 percent, reversing an earlier decline.