LONDON MARKETS: U.K. Stocks Gain Ground As Miners Get Boost From Softening Dollar

By Carla Mozee, MarketWatch Features Dow Jones Newswires

Industrial output data is on deck at 9:30 a.m. in London

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U.K. stocks rose Tuesday, with mining shares among advancers before investors turn their attention to data on British industrial output.

The FTSE 100 index picked up 0.2% to 7,523.75, led by financial and consumer goods shares. On Monday, the index fell 0.2% (http://www.marketwatch.com/story/uk-stocks-fall-from-2-month-high-as-pound-regains-strength-2017-10-09).

Mining shares were higher, with dollar-denominated metals such as gold and copper rising as a key U.S. dollar gauge continued to fall. Shares of copper producers Antofagasta PLC (ANTO.LN) added 1.3% and Fresnillo PLC (FRES.LN) moved up 0.3%. Stock in Randgold Resources PLC (RRS.LN) (RRS.LN) bulked up 0.5%.

As the greenback eased, the pound bought $1.3181, not far off from $1.3141 late Monday in New York.

Investors will get an August reading on U.K. industrial and manufacturing production at 9:30 a.m. London time, or 4:30 a.m. Eastern Time.

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"Manufacturing output rose on the month in July for the first time in 2017, after a very poor first half of the year, given the boost the sector should have had from sterling," said analysts at HSBC in a weekly note.

"Perhaps some of the softness reflected poor confidence around Brexit and higher costs. However, the PMIs have been good over the summer, and we expect another small rise in August," said HSBC.

Analysts polled by FactSet are expecting manufacturing production to have risen 1.9% on a year-over-year basis, and by 0.3% month-over-month.

Stocks in focus: Financial shares were higher in early trade, with lender HSBC Holdings PLC (HSBA.LN) (HSBA.LN) up 1.1% and Direct Line Insurance Group PLC (DLG.LN) tacking on 1.9%.

Capita PLC (CPI.LN) was 2.9% higher after the outsourcing and professional services company named Jonathan Lewis as its new chief executive officer, effective Dec. 1 (http://www.marketwatch.com/story/capita-appoints-jonathan-lewis-as-new-ceo-2017-10-10-2485286).

Sky PLC shares (SKY.LN) were off 0.1%. The U.K. Competition Authority said it plans to examine how the proposed takeover of Sky by 21st Century Fox Inc (http://www.marketwatch.com/story/competition-watchdog-lays-out-fox-sky-probe-2017-10-10). (FOX) would affect media plurality and broadcasting standards in the U.K.

(END) Dow Jones Newswires

October 10, 2017 04:06 ET (08:06 GMT)