By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Miners led U.K. stocks higher on
Wednesday, after China's new leadership implied that its supportive
economic policy would remain in place in the near future.
The FTSE 100 index rose 0.3% to 5,888.39.
Shares of Tesco PLC (TESO) posted one the biggest gains in the
index, up 3.2%, after the supermarkets retailer said it would
conduct a strategic review of its Fresh & Easy business in the
U.S., as it is clear it "will not deliver acceptable shareholder
returns on an appropriate time frame in its current form."
In addition, Tesco announced that its deputy chief executive Tim
Mason, will be leaving the firm after 30 years' service.
On a sector-specific basis, mining shares put on the best
performance, taking a cue from comments from China's new
leadership. The Communist Politburo said the economy is
stabilizing, but that it would keep its accommodative stance in
coming months.
Resource firms tend to rise on growth indications from China, as
the country is a major user of natural resources.
Shares of Rio Tinto PLC (RIO) rose 3%, BHP Billiton PLC (BHP)
added 2.3% and Anglo American PLC gained 3.1%. Metals prices were
rising across the board.
Also on investors' minds in the U.K., Chancellor of the
Exchequer George Osborne delivered his autumn statement and said
the U.K. economy will shrink 0.1% in 2012, down from a previous
forecast of 0.8% growth. He also ordered a squeeze on welfare
benefits, as the budget deficit looked set to be higher than
expected, according to media reports.
Banks tracked their European counterparts higher, after
Citigroup lifted the region's banking sector to overweight.
Standard Chartered PLC rose 1.5% and Barclays PLC (BCS) picked up
0.8%. Shares of HSBC Holdings PLC (HBC) added 1%, as it's selling
its entire stake in Ping An Insurance (Group) Co. of China Ltd. for
72.74 billion Hong Kong dollars ($9.39 billion).
Shares of Sage Group PLC dropped 3.7%, after the software firm
reported full-year earnings and said underlying earnings per share
dropped compared to last year due to an increase in taxes.
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