U.K. stocks gain ground as miners get boost from softening dollar

 

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

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MARKETS REPORTER

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 UKX, +0.14%  picked up 0.2% to 7,523.75, led by financial and consumer goods shares. On Monday, the index fell 0.2%.

Mining shares were higher, with dollar-denominated metals such as goldLCOZ7, +0.43% and copper HGZ7, +0.25%  rising as a key U.S. dollar gaugeDXY, -0.29%  continued to fall. Shares of copper producers Antofagasta PLCANTO, +0.87% added 1.3% and Fresnillo PLC FRES, +0.84% moved up 0.3%. Stock in Randgold Resources PLC RRS, +0.53% GOLD, +0.99%  bulked up 0.5%.

As the greenback eased, the pound GBPUSD, +0.2968%  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.

“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, +1.09% HSBC, +0.18%  up 1.1% and Direct Line Insurance Group PLC DLG, +1.88%  tacking on 1.9%.

Capita PLC CPI, +3.20%  was 2.9% higher after the outsourcing and professional services company named Jonathan Lewis as its new chief executive officer, effective Dec. 1.

Sky PLC shares SKY, -0.11%  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.FOXA, -1.52%  would affect media plurality and broadcasting standards in the U.K.