A logo sits on a sign outside a Lloyds Bank branch, a unit of Lloyds Banking Group, in London. Britain’s bailed-out Lloyds Banking Group led the FTSE higher yesterday after posting a sharp rise in underlying in the first quarter, boosted by falling impairments, cost-cutting and the broader economic recovery.

AFP/London


London’s stock market rose to two-month highs yesterday on upbeat British company results, while Europe’s other main indices shut for a public holiday.
Wall Street was trading higher after a weak opening following mixed US corporate earnings and economic data ahead of today’s key monthly jobs data.
London’s FTSE 100 index of top companies rose 0.43% to close at 6,808.87 points after reaching a two-month intraday high at 6,811.64.
In foreign exchange, the British pound rose versus the euro and dollar.
Most of Europe’s main stock markets were closed yesterday for the May Day holiday. Indices had closed mixed Wednesday on news of a surprise slump in US economic growth.
“As mainland Europe takes a lie-in to celebrate May Day, the FTSE 100 has done its best to keep us entertained,” said analyst Will Hedden at trading house IG.
“Household names Lloyds and BSkyB are putting smiles on the faces of equity investors today, both impressing with their updates.”
In the US, a report on weekly jobless claims showed a rise of 14,000 to 344,000, worse than analysts expected. But separate government data revealed a jump in US consumer spending.
Britain’s bailed-out Lloyds Banking Group led the FTSE higher after posting a sharp rise in underlying in the first quarter, boosted by falling impairments, cost-cutting and the broader economic recovery.
The news sent LBG shares rallying 5.49% to 79.5 pence.
Elsewhere, BSkyB jumped 2.33% to 900.50 pence after the broadcaster posted rising revenues for the nine months to the end of March.
The television sector won another boost from news that US entertainment giant Viacom has agreed to buy Britain’s Channel 5 from the Northern and Shell media group for £450mn.
On the downside, Rolls-Royce shares fell 0.95% to 1,040 pence after the engine-maker warned over profits at its marine division.
Profits and sales are expected to flatten this year as government cutbacks on defence spending ends the company’s decade of rampant growth.
Shares in Reckitt Benckiser gained 2.26% to 4,883 pence, one day after the household goods group ended talks over a possible offer for the consumer health unit of German drugs giant Merck.
Over in the resources sector, shares in energy explorer and takeover target Heritage Oil slipped 0.22% to 314.5 pence on London’s second-tier FTSE 250 index.
The stock had spiked by 23.32% on Wednesday after the Africa-focused group agreed to a $1.55bn takeover from Qatar’s Al Mirqab investment fund, pitched at 320 pence per share.
In foreign exchange trade, the euro stood at $1.3866, unchanged from the level late in New York on Wednesday.
The European single currency eased to 82.05 British pence from 82.17 pence on Wednesday, while the pound gained to $1.6898 from $1.6871.
Elsewhere yesterday, the price of gold fell to $1,278.50 an ounce on the London Bullion Market, from $1,288.50 on Wednesday.