UK stocks rose, with the benchmark FTSE 100 Index rebounding from its lowest level since September, after the China manufacturing grew for the fourth month, boosting commodity companies.
Rio Tinto Group advanced 2.6 percent and Xstrata Plc rose 4.1 percent in metals prices obtained. Sage Group Plc rose 5.4 percent as the UK's largest software maker reported earnings that beat estimates. Royal Bank of Scotland Group Plc led banking stocks higher after three days of losses.
The benchmark FTSE 100 gained 80.9, or 1.5 percent, to 5,609.17 at 12:42 pm in London. The index has fallen 1.1 percent so far yet week after the rescue of the European Union led by Ireland to reassure investors that the region will contain the crisis of sovereign debt. The FTSE All-Share Index advanced 1.4 percent today, while Ireland ISEQ index rose 1.2 percent.
"We are optimistic about UK equities and see decent upside down at the end of 2011," UBS strategists wrote Nick Nelson and Karen Olney, in a report dated November 30, when he presented his budget for 6700 in late 2011 for the FTSE 100. Marking a 21 percent rally yesterday's close. "We believe that the flow of funds valuation and strongly support."
Rio Tinto, the mining company in the world's third largest, gained 2.6 percent to 4,187 pence. Xstrata rose 4.1 percent to 1,345 pence as copper, lead, nickel and rising tin prices on the London Metal Exchange.
China's economy
China Purchasing Managers' Index for November rose to 55.2, its fastest pace in seven months, from 54.7 in October, according to the China Federation of Logistics and Purchasing. The result was more than the 54.8 median forecast of economist surveyed by Bloomberg News. A PMI published by HSBC Holdings Plc jumped also.
Sage rose 5.4 percent to 271.1 pence as the company said earnings for the year increased to 227.3 million pounds (355.1 million U.S. dollars), exceeding analysts' estimates of 220 million pounds. Wise had sales of 1.44 billion pounds. Analysts predicted sales of 1.43 billion pounds, according to the median of 19 estimates.
Royal Bank of Scotland gained 4.8 percent to 39.41 pence. Barclays rose 2.8 percent to 263.3 pence.
Sovereign Swaps
The FTSE 350 banks index rose 1.7 percent, the most since Nov. 4 after falling for three consecutive days amid concern the debt crisis in the region is worsening. The index rose as Portugal and Ireland led a decline in the cost of insurance against loss of government and corporate bonds in Europe. Contracts to Belgium, Italy and Spain also fell from record levels, helping push down the benchmark index of the region's sovereign swaps highs.
Prudential Plc climbed 4.6 percent to 594 pence, the pace at a rally in insurers in the UK, after saying it plans to double the profit in Asia in 2013. Aviva Plc, the second largest UK insurer, rose 3.1 percent to 365.4 pence and Legal & General Group Plc rose 3 percent, to 94.1 pence.
Thomas Cook Group Plc retreated 3.6 percent to 179.6 pence. the second largest European tour operator reported a loss for the year of 2.6 million pounds ($ 4,000,000) at the close of European airspace after a business trip and altered volcanic eruption took time costs.
Numis Securities cut its recommendation to the tour operator to "hold" from "add."
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