U.K. stocks climbed for the first time in five days, dragged higher by BP Plc, as investors looked for progress on ending a budget impasse in the U.S. and a measure of China’s services industries rose to a six-month high.
The dollar rose to a seven-week high after a report showed U.S. manufacturing expanded in August to the fastest pace since June 2011, fueling expectation the Federal Reserve will start cutting bond purchases this month.
The pound advanced for a third day versus the dollar, erasing this year’s decline, as an industry report showing U.K. manufacturing expanded in September added to evidence the recovery is gaining momentum.
A U.K. factory index increased to a 2 1/2-year high in August, while a pickup in Italy and Spain helped euro-area manufacturing expand faster than initially estimated, evidence the region’s recovery is building momentum.
The pound rose for a fifth day versus the euro as a report showed a gauge of U.K. construction based on a survey of purchasing managers increased for a fourth month in August, reaching the highest in almost six years.
Chartered Institute Of Purchasing And Supply Photos