By Barbara Kollmeyer
MADRID (MarketWatch) -- Britain's benchmark stock index
straddled the flat line Thursday, while shares of Man Group and
Marks & Spencer posted strong gains, as the Bank of England
decided to keep monetary policy unchanged.
The FTSE 100 index gained 0.1% to 5,687.11 in afternoon trading,
a reversal after falling earlier in the session.
The Bank of England said it would maintain its lending rate at a
record-low 0.5% and keep its asset-purchase program unchanged as
well.
The decisions were in line with market expectations. London
investors also digested British economic reports.
The Halifax House Price Index showed prices fell 3.6% in
September, the biggest monthly drop since records began in 1983.
Other data showed industrial production rose 0.3% in August, up
4.2% on an annual basis, in line with expectations.
Gold futures continued to push into record territory , with the
December contract touching $1.366 an ounce at one point Thursday,
but London-listed miners were retreating from gains seen in recent
days. Gold has been particularly strong on expectations central
banks will be more likely to embrace another round of quantitative
easing.
Shares of miner Kazakhmys PLC dropped 4.6% and Antofagasta PLC
fell 3.3%.
On the positive side, shares of hedge-fund manager Man Group
jumped 5.5%, posting one of the biggest gains in the FTSE 100
index.
Shares of Marks & Spencer Group PLC rallied 4% after the
retailer reported an increase in second-quarter sales, even as it
warned trading conditions are worsening and costs are rising.
Shares of smaller-cap retailer Mulberry Group surged 17% after
it said sales and profit for the year ending March 31 would come in
well ahead of expectations. It said business during the Christmas
trading period, though, would be crucial.
Meanwhile, recruitment groups Hays PLC and Michael Page
International PLC updated investors on trading and conditions.
Shares of Hays fell 2.1%. The company reported a 21% gain in net
fees in the fiscal first quarter, driven by a big rise in the
Asia-Pacific region.
Michael Page shares dropped 3.6%. Gross profit for the third
quarter rose 37%, the company said, with permanent recruitment
activity up and temporary activity also showing growth for the
first time this year.