By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks climbed for a third straight
day on Friday, after data outlined an improvement in the country's
exports and U.S. figures showed unemployment dropped to the lowest
level since 2008.
The FTSE 100 index rose 0.2% to close at 6,571.68, ending the
week 0.9% higher.
The benchmark initially moved lower after the U.S.
nonfarm-payrolls report missed analyst expectations, but the index
recovered as investors starting focusing on the broader improvement
in the labor market. The unemployment rate fell to the lowest level
since October 2008 at 6.6% from 6.7%, while the participation rate
edged up to 63.0% from 62.8%.
On the data front in the U.K., the Office for National
Statistics said industrial output in the country rose 0.4% in
December, missing analyst expectations. Meanwhile, trade data
showed exports rose in December, helping to narrow the country's
total trade deficit.
"The U.K. is not recovering at the pace signaled by the PMIs in
late 2013, but that should come as little surprise. A rampant boom
was unlikely so soon after a financial crisis," said Rob Wood,
chief U.K. economist at Berenberg, in a note.
"There was little in this morning's figures to change the
picture of a U.K. economy that is gradually improving, and is
likely to benefit from rising confidence and a stronger trading
partner this year," he added.
Among notable gainers in London, shares of Tate & Lyle PLC
gained 1.8% after J.P. Morgan Cazenove lifted the sugar producer to
overweight from underweight. The analysts said the company is
poised to return to strong volume growth, with new technologies
such as natural sweeteners providing further upside.
Mining firms were also the rise, tracking gains for most metals
prices. Shares of Antofagasta PLC climbed 2.1%, Rio Tinto PLC rose
2.1% and BHP Billiton PLC (BHP) added 1.3%.
More must-reads from MarketWatch:
ECB to be accommodative as long as needed: Mersch
Investing in Russia is an Olympic event
Google takes a stand with Olympic rainbow Doodle, draws wild
Twitter applause
Subscribe to WSJ: http://online.wsj.com?mod=djnwires