U.K. Stocks Jump Most Among European Markets as Pound Declines
(Bloomberg) -- British shares climbed the most in almost two weeks as the pound weakened on speculation the Bank of England may lower borrowing costs another time this year.
The FTSE 100 Index rose 0.9 percent, extending gains in the last hour of trading. While the BOE kept its key rate and asset-purchase target unchanged, policy makers indicated there’s a chance of another cut this year. The FTSE 250 Index of mid-cap shares and the FTSE Small Capitalisation Index Ex Investment Trusts also advanced.
U.K. shares climbed the most among western-European markets, after closing near a one-month low on Wednesday. The regional Stoxx Europe 600 Index added 0.6 percent, also extending gains in the last hour of trading.
Among British stocks moving on corporate news, Wm Morrison Supermarkets Plc rallied 7.5 percent after reporting underlying pretax earnings that beat analysts’ estimates. Peer Tesco Plc gained 4.9 percent, while J Sainsbury Plc added 2.1 percent. Next Plc lost 4.9 percent after warning that sales will be hurt by Brexit-induced price increases, triggering a 2.6 percent decline in Marks & Spencer Group Plc.