By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved firmly higher in early
action on Thursday, after a dovish tone from the U.S. Federal
Reserve lifted equities globally, and with a Bank of England policy
decision ahead.
The FTSE 100 index gained 0.7% to 6,526.26, on track to break a
two-day losing streak.
The strength came after Fed minutes released Wednesday
reaffirmed the U.S. central bank's intention to be prudent in
raising interest rates. U.S. stocks scored their biggest one-day
gains of the year in the wake of the release.
In the U.K., the Bank of England will release its latest
monetary policy decision at noon, or 7 a.m. Eastern. Most
economists expect no changes to its record low interest rates or
the 375 billion ($607 billion) asset-purchase program.
At the BOE's September meeting, two members voted in favor of a
rate hike. Since then, however, U.K. inflation has slipped and
economic data have generally weakened, so most of the nine-member
Monetary Policy Committee are widely expected to vote for no
change.
Among London market movers, miners posted some of the biggest
gains, as a weaker dollar helped drive commodity prices higher.
Shares of Randgold Resources Ltd. rallied 6.8%, Fresnillo PLC
gained 5.4%, and Antofagasta PLC put on 3.3%.
Shares of Rolls Royce Holdings PLC added 1.2% after Norwegian
Air Shuttle ASA ordered Trent 1000 engines for nine
Dreamliners.
Royal Mail PLC added 1.3%. The delivery company reached a
settlement agreement with the French competition authority over
allegations it had breached antitrust laws in the postal
market.
Barclays PLC (BCS) inched 0.7% higher after the bank late
Wednesday agreed to pay $20 million to settle a U.S. class action
lawsuit over Libor manipulation.
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