By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of ARM Holdings PLC led U.K.
stocks higher on Tuesday, after a well-received earnings report,
while Associated British Foods PLC gained after declaring an
increase in dividends.
The FTSE 100 index jumped 2% to end at 6,406.12.
ARM Holdings (ARMHY) rallied nearly 12%, after the chip maker
posted a better-than-expected 28% rise in first-quarter revenue,
boosted by strong demand for its microchip designs. Adjusted pretax
profit jumped 44%, beating expectations of a 25% rise.
Shares of Associated British Foods surged 8.1%, after the food
and clothing company reported a 26% rise in first-half pretax
profit and declared a 10% increase in interim dividends.
International Consolidated Airlines Group SA gained 5.2%, after
shareholders at Vueling Airlines SA , a low-cost Spanish carrier,
accepted a cash tender offer for most of the stake in the company
not already owned by IAG.
Rolls-Royce Holdings PLC gained 3.3%. The power-systems
developer said it has agreed to sell its shareholding and interest
in the RTM322 helicopter-engine program to Turbomeca, which is part
of engineering group Safran SA .
Shares of SABMiller PLC gained 3.4%, after the brewer said
Executive Chairman Graham Mackay has been diagnosed with a brain
tumor and therefore has accelerated the planned promotion of Alan
Clark to chief executive with immediate effect.
Banks were also among notable movers, tracking gains for the
sector across Europe, after weak macro economic data fueled
speculation that the European Central Bank could move to cut rates
at its policy-setting meeting next week.
Lloyds Banking Group PLC (LYG) added 4%, Barclays PLC gained 3%
and HSBC Holdings PLC (HBC) rose 1.3%.
Disappointing data from China weighed on mining stocks, as the
country is a major user of natural resources. The preliminary
version of HSBC's manufacturing purchasing managers' index fell to
a two-month low of 50.5 from March's final reading of 51.6, and
below a Bloomberg forecast of 51.5.
Shares of Fresnillo PLC dropped 2.2%, Antofagasta PLC slipped 1%
and Randgold Resources Ltd. fell 0.8%. In contrast, Rio Tinto PLC
(RIO) inched 0.7% higher and Anglo American PLC rose 0.2%.
Outside the main index in London, shares of Kazakhmys PLC lost
3.8%, after Goldman Sachs cut the miner to sell from neutral.
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