By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved higher Wednesday, with
metals producers leading advancers, and Marks & Spencer PLC a
standout on anticipation of expansion plans by the retailer.
The FTSE 100 index rose 0.1% to close at 6,659.04, extending
Tuesday's climb of 0.8% when European markets as a whole gained on
upbeat manufacturing reports from the euro zone and the U.S.
The metals group was the best performing sector on the U.K.
equity benchmark, picking up the pattern overnight in Asia when
prices for spot iron ore rose and gold futures staged a rebound.
Copper futures (HGK4) turned higher, pushed to $3.04 a pound in the
wake of a strong earthquake in Chile, the world's largest producer.
Five deaths have been reported after the magnitude-8.2 quake hit
the country's northern coast.
Workers at Anglo American PLC and Glencore Xstrata's PLC
Collahuasi copper mine in Chile were evacuated after the quake.
Shares of Anglo American (AAUKY) in London added 1.5%, and Glencore
Xstrata (GLNCY) rose 1.3%. Meanwhile, shares of BHP Billiton PLC
(BHP) popped up 1.9%, stretching their 2.1% rise on Tuesday when
the company said it may continue to adjust its portfolio to focus
on up to five key commodities. A BHP executive on Wednesday
expressed confidence in its coal business.
Stock in Marks & Spencer Group shined, posting a 2.2% rise
following a report from the U.K.'s The Times that the
department-store chain operator is planning to open 250 stores
world-wide over the next three years, including food-only stores in
Paris.
Meanwhile, new snapshots captured growth in the U.K. real-estate
market.
Lender Nationwide said its monthly house price index rose 0.4%
in March from the previous month, and by 9.5% on a year-over-year
basis, putting the average house price at the highest level since
January 2008 at GBP180,246 ($300,001).
On the construction side, confidence on a 12-month horizon among
builders reached the highest level since January 2007, according to
market research firm Markit. Housing activity was the stronger
performing construction category last month, driven by improving
demand. The Markit/CIPS UK construction PMI was 62.5 in March
versus 62.6 in February.
The PMI reading "was a little below consensus expectations, but
at these sorts of levels it makes next to no difference to the
message from the survey. Construction is booming," said Robert
Wood, chief U.K. economist at Berenberg, in a Wednesday note.
Year-to-date, shares of home builder Barratt Developments PLC
have risen 20% and shares were up 0.3% on Wednesday.
In the wake of recession and government cut backs, "low interest
rates, rising confidence and surging house prices are combining in
a sweet spot for the sector," wrote Wood. "That is yet another
reason to think the U.K. will easily outperform consensus growth
expectations this year."
Investment in dwellings was up roughly 9.9% in the fourth
quarter of 2013 from the year-ago period, according to the Office
of National Statistics which on Wednesday released a roundup of
economic developments over the past month. Gross domestic product
in the final quarter of last year grew by 0.7% and by 1.7% on an
annual basis.
Elsewhere, shares of Standard Life PLC and St. James's Place PLC
rose 2.1% and 0.1%, respectively, with J.P. Morgan Cazenove telling
clients that the companies are set to benefit the most from
proposed new regulations on workplace pensions and annuities in the
U.K.
But finishing lower was GlaxoSmithKline PLC (GSK), off 0.7%,
after the British drug maker halted a late-stage trial of its
MAGE-3 cancer vaccine.
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