FTSE 100 Rallies As Barclays Beats Forecasts

(RTTNews) - U.K. stocks rose on Friday as Barclays reported stronger than expected third-quarter results and investors awaited an update on the Brexit talks.

European Union and British negotiators will meet today for intensive negotiations on a last-minute trade deal that could stave off a tumultuous finale to the five-year-old Brexit crisis.

Meanwhile, U.K. retail sales grew for a fifth consecutive month in September and exceeded expectations by a wide margin supported by food and online sales as well as a recovery in non-food sales, preliminary data from the Office for National Statistics showed.

The volume of retail sales grew 1.5 percent month-on-month in September, which was much bigger than the 0.4 percent increase economists had forecast. The growth for August was revised up to 0.9 percent from 0.8 percent.

Investors shrugged off downbeat survey data showing that the U.K.'s economic recovery faded in October.

The flash reading of the IHS Markit/CIPS UK Composite Purchasing Managers' Index (PMI) fell to a four-month low of 52.9 from 56.5 in September.

The benchmark FTSE 100 climbed 82 points, or 1.4 percent, to 5,868 after rising 0.2 percent the previous day.

Barclays surged 7.2 percent. The bank posted a pre-tax profit of £1.1 billion in the third quarter, compared with £200 million a year ago as bad debt provisions eased.

Miners Anglo American and Glencore rose over 2 percent while oil giant BP Plc gained 3.6 percent and Royal Dutch Shell surged 3.5 percent.

InterContinental Hotels Group dropped 1.2 percent after the Holiday Inn-owner posted a plunge in third-quarter hotel room revenue.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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