By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Whitbread PLC climbed in an
upbeat U.K. market after it reported encouraging sales figures on
Tuesday, while banking giant HSBC Holdings PLC rose after a broker
upgrade.
The FTSE 100 index added 0.7% to 6,374.21, closing higher for a
fourth straight day.
Shares of Whitbread gained 3.6% after the hotel and restaurant
operator reported a 13.8% rise in total sales in the 13 weeks to
May 30, as cold weather boosted sales at coffee shops.
Also on the rise in London, shares of banking giant HSBC (HBC)
put on 2.1% after Citigroup lifted the firm to buy from neutral,
citing a weak performance in the past month as a good reason to buy
into the company now.
Citigroup also reiterated its buy rating on Standard Chartered
PLC , helping send the bank 1.8% higher.
Other banks also gained, with Lloyds Banking Group PLC (LYG) up
1.4%, Barclays PLC (BCS) 1.2% higher and Royal Bank of Scotland
Group PLC (RBS) increasing 2.2%.
Also of interest in the U.K. on Tuesday, data showed inflation
accelerated to 2.7% in May, fueling worries that higher prices
could undermine a recovery.
"Real pay has been falling continually since late 2009, which
has been one of the factors causing the economic recovery to have
been disappointingly weak," said Chris Williamson, chief economist
at Markit, in a note.
"However, other factors have helped offset some of the income
squeeze from inflation in recent months. Households' financial
worries are now at their lowest since the start of 2010, according
to Markit's monthly study of 1,500 households in June, with
sentiment having been buoyed by people being busier at work, rising
house prices and the better economic news flow in the media," he
added.
Among other notable movers in London, shares of EasyJet PLC
added 2.2% after the budget airline said it will buy 135 A320
planes from Airbus for delivery between 2015 and 2022.
Advertising major WPP PLC picked up 0.9% after saying it has
taken a stake in mobile-content platform Muzy Inc.
On a more downbeat note in London, some mining firms moved lower
as metals prices mostly dropped.
Shares of Eurasian Natural Resources Corp. erased 4.5%,
Fresnillo PLC lost 2.2% and Antofagasta PLC dropped 2%.
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