U.K. stocks climbed, with the FTSE 100 Index rebounding from a one-month low, after a Federal Reserve official said the U.S. economy isn't strong enough to justify a reduction in stimulus measures.
Rentokil Initial Plc (RTO) rose the most in five weeks after a report that the company is in talks with private-equity investor Clayton Dubilier & Rice LLC to combine its office-maintenance unit with Balfour Beatty Plc. Cobham Plc (COB) slumped 4.6 percent as a shareholder sold a 3.6 percent stake in the maker of defense and aerospace equipment.
The FTSE 100 advanced 49.96 points, or 0.8 percent, to 6,575.08 at 8:59 a.m. in London. The gauge yesterday dropped to the lowest level since May 3 amid speculation the U.S. Federal Reserve would start to taper its bond-buying program if the economy improved. The broader FTSE All-Share Index added 0.7 percent today, while Ireland's ISEQ jumped 1.2 percent.
In the U.S., Fed Bank of Atlanta President Dennis Lockhart, who doesn't hold a policy vote this year, said officials at the central bank are committed to continuing stimulus measures.
"To the extent that the markets are seeing mixed messages, it simply reflects the debate that's going on among the colleagues on the Federal Open Market Committee," Lockhart said in a Bloomberg Television interview. "The bigger picture is that any adjustment is not a major policy shift."
Elsewhere, UBS AG raised its year-end target for the FTSE 100 (UKX) to 7,000, from its earlier prediction of 6,300, according to a note to clients.
No comments:
Post a Comment