U.K. stocks rose, as banks and mining companies gained, amid speculation that central banks in the U.S. and China will ease monetary policy. Randgold Resources Ltd. (RRS) and Antofagasta Plc (ANTO) each advanced more than 3 percent. Anglo American Plc (AAL) climbed 2.1 percent as the mining company was said to be nearing an agreement to end a 10-month dispute over a copper mine in Chile. Petropavlovsk Plc (POG) plunged 16 percent, its biggest slump in more than three years. The benchmark FTSE 100 Index (UKX) rose 24.37, or 0.4 percent, to 5,798.57 at 12:02 p.m. in London. Stocks fell the most in a month yesterday, led by a selloff in mining companies, as BHP Billiton Ltd. put $68 billion of projects on hold and Japan reported a wider-than-estimated trade deficit. The broader FTSE All-Share Index also gained 0.4 percent, while Ireland’s ISEQ Index added 0.1 percent. “I’ve always taken the view that there is a very high probability of QE3,� said Robert Parker, a senior adviser at Credit Suisse Asset Management in London, in a Bloomberg TV interview, referring to a third round of quantitative easing. “Politically, I think that has to be in September.� Minutes from the Federal Open Market Committee’s July 31- Aug. 1 meeting showed that many members decided that they would soon need to opt for further stimulus. “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,� according to the record of the gathering. China’s Manufacturing In China, a preliminary report today indicated that manufacturing will contract at a faster pace in August, signaling the country’s economy needs more monetary and fiscal stimulus to secure a second-half rebound in growth. A preliminary reading of 47.8 for a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics compared with July’s final 49.3 figure. If confirmed, it would be the lowest level since November and the 10th month that the reading has stayed below 50, the longest run in the index’s eight-year history. German Chancellor Angela Merkel will today host French President Francois Hollande as the leaders of Europe’s two biggest economies seek common ground on Greece and the wider euro-area debt crisis. Greece’s Prime Minister, Antonis Samaras, will follow Hollande to Berlin tomorrow and travel to Paris on Aug. 25. He used an interview published yesterday in Germany’s best-selling Bild newspaper to call for more time to carry out policy changes to address his country’s debt woes. Randgold, Evraz Randgold Resources, a miner of the precious metal in Africa, rose 4.2 percent to 6,400 pence as gold rallied to a 16- week high. Antofagasta, which owns copper mines in Chile, climbed 3.2 percent to 1,156 pence. Fresnillo Plc (FRES), the world’s biggest primary silver producer, gained 3.2 percent to 1,574 pence. A gauge of commodity producers posted the biggest advance on the Stoxx Europe 600 Index. (SXXP) Evraz Plc (EVR), the steelmaker part-owned by Russian billionaire Roman Abramovich, gained 1.5 percent to 259.4 pence. The stock was upgraded to overweight from neutral, meaning that investors should buy the shares, at HSBC. Anglo American added 2.1 percent to 1,949.5 pence. The mining company will announce as soon as today an agreement to end its dispute with Chile’s Codelco over the world’s fifth- largest copper mine, according to a person with knowledge of the negotiations. Vedanta Rises Vedanta Resources Plc (VED) advanced 1.6 percent to 946.5 pence. The copper producer controlled by billionaire Anil Agarwal will raise its offer to increase its stakes in Hindustan Zinc Ltd. and Bharat Aluminium Co. The company will ask for shareholder approval on Aug. 28 to offer as much as 15 percent more for Hindustan Zinc, it said. Vedanta will raise its offer for Bharat Aluminium as much as 63 percent to $550 million. WH Smith Plc jumped 4.7 percent to 609.5 pence after the U.K. magazine retailer and stationer with more than 1,000 stores and travel shops said it plans a further share buyback of as much as 50 million pounds ($79 million). Petropavlovsk tumbled 16 percent to 396 pence, its biggest decline since April 2009. The producer of gold in Russia said first-half profit fell 90 percent as interest payments and depreciation costs rose. Net income slumped to $11 million from $108.2 million a year earlier, Petropavlovsk said in a statement. Interest charges more than doubled to $34.6 million in the period and the company took a depreciation charge of $106.9 million. To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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