MW:Banks and oil firms lift U.K. stocks after data
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — U.K. stocks jumped on Tuesday, with oil firms and banks providing the most support, as manufacturing data showed a surprise improvement in May.
The FTSE 100 index UK:UKX +0.78% gained 0.7% to 5,667.07, after wobbling in early action.
Oil firms provided the most support, as the Norwegian government stopped a petroleum workers’ labor strike and prevented an industry lockout, which was planned to start midnight Tuesday.
The lockout could have taken about 2 million barrels of crude oil a day off the market, more than was caused by disruptions in Libya last year. Norway won’t tolerate a lengthy oil strike
BP PLC UK:BP +1.29% BP +0.10% rose 1.4%, Royal Dutch Shell PLC UK:RDSA +1.11% UK:RDSB +1.18% RDS.A -0.68% RDS.B -1.01% gained 1.4% and BG Group PLC UK:BG +0.31% inched 0.7% higher.
The broader U.K. stock market struggled for direction in early trade but was sent firmly into positive territory after better-than-expected U.K. manufacturing data.
The U.K. Office for National Statistics said that manufacturing output rose 1.2% on a monthly basis in May, exceeding analysts’ expectations of a 0.2% decline. U.K. May manufacturing output rises 1.2%
Further on the data front, the U.K.’s seasonally adjusted trade deficit in goods narrowed to 8.4 billion pounds ($13 billion) in May from 9.7 billion pounds in April.
Banks headed north after the data releases, with HSBC Holdings PLC UK:HSBA +1.19% HBC -0.30% rising 1%, Royal Bank of Scotland Group PLC UK:RBS +1.80% RBS +2.39% up 1.5% and Standard Chartered PLC UK:STAN +1.69% 1.6% higher.
Mining firms were also higher, shaking off disappointing Chinese import data. China imports disappoint, exports slow
Xstrata PLC UK:XTA +3.11% gained 2.7%, BHP Billiton PLC UK:BLT +1.51% BHP -0.94% took on 1% and Anglo American PLC UK:AAL +1.91% picked up 1.4%.
Marks & Spencer Group PLC UK:MKS +1.56% added 1.5%, after the retailer reported a 0.7% drop in group sales for the first quarter ending June 30, but said its estimates for the financial year 2012/13 remain unchanged.
Sara Sjolin is a MarketWatch reporter, based in London.
