UK stocks close higher, Mitie Group soars on buyout deal
EWU•Earnings, jobs data and defence stocks
- Compass Group CPG.L shares fell 1.6% even as the catering giant reported a third-quarter organic revenue growth of 7.1%.
- IQE IQE.L shares surged 30.4% after the UK semiconductor wafer maker raised its full-year revenue growth forecast.
- Britain's jobs market appears to have stabilised at weak levels, with official data showing annual wage growth and unemployment steady in the three months to May and payrolled employment little changed in June.
- The increase was in line with forecasts in a Reuters poll of economists and did little to change expectations that the Bank of England will keep interest rates on hold.
- London-listed defence stocks rose a day after Britain's new Prime Minister Andy Burnham appointed former defence minister John Healey as finance minister. Shares of Babcock International BAB.L rose 4.1%, Qinetiq QQ.L gained 3.1% and BAE Systems BAE.L added 1.8%.
Mitie jumps on £3.1 billion takeover agreement
- Shares of British oil majors BP BP.L and Shell SHEL.L rose more than 1% as crude prices touched a five-week high after attacks between the U.S. and Iran and a threatened naval blockade of Saudi Arabia by Yemen's Houthis sparked concerns about supply disruption.
- Precious metal miners .FTNMX551030 led sectoral gains, up 4.2%, tracking a rise in gold prices, as geopolitical tensions persisted.
- Mitie MTO.L jumped 38.8% to the top of the midcap index after the British outsourcer agreed to be acquired by rival OCS Group International in a deal valued at about £3.1 billion ($4.17 billion).
- Investors sifted through a fresh batch of corporate earnings for signs of how the Middle East conflict is affecting companies.
