U.K. Shares Jump After Upbeat Earnings Reports, GDP In Line With Expectations
U.K. shares surged on Wednesday, supported by gains in companies that reaffirmed their rosy outlook and a weak British Pound that turned lower versus the greenback for the second day in a row.
The FTSE 100 index jumped more than 0.6 percent to trade around 7480.00. Shares of ITV and Compass Group PLC topped the market, soaring at least 2.6 percent after the releases of their earnings results. While the maker of “Downton Abbey” raised its dividend, the catering services company posted a rise in third-quarter revenue. Both companies backed their full-year expectations.
The overall performance was also supported by gains for energy and mining stocks. Crude oil held on gains after taking off on Tuesday, spurring gains in shares of Royal Dutch Shell PLC and BP., which gained more than 0.5% each.
With copper price jumping to the highest level since mid-May 2015, shares of Fresnillo climbed more than 0.7 percent, also boosted by its 2017 production guidance which showed higher silver and gold output for the second quarter. Shares of BHP PLC also traded higher, adding more than 0.8 percent.
The Office for National Statistics on Wednesday reported that Britain’s economy grew in line with expectations in the second quarter. Britain GDP was reported to rise 0.3% in the three months to June following a 0.2% growth in the first three months of the year. On a yearly basis, the economy expanded by 1.7% from 2.0% in the first quarter, in line with forecasts.
Buy Stop at 7480.00, Take profit at 7500.00, Stop loss at 7470.00