U.K. Stocks Rise on U.S. Durable Goods; Energy Shares Advance

By Sarah Jones and Michael Patterson

Aug. 27 (Bloomberg) -- U.K. stocks advanced, erasing early declines, after orders for U.S. durable goods unexpectedly climbed in July and rising commodity prices sent energy and mining companies higher.

The FTSE 100 Index rallied after the U.S. government said bookings of goods meant to last several years gained 1.3 percent. BP Plc and BG Group Plc led energy companies higher as crude and natural gas prices increased. Anglo American Plc, the fourth- biggest diversified mining company, rose 1.8 percent as copper and gold advanced.

The FTSE 100 advanced 22.7, or 0.4 percent, to 5,493.4 at 2:02 p.m. in London, having earlier declined as much as 0.7 percent. The FTSE All-Share Index rose 0.3 percent, while Ireland's ISEQ Index slipped 0.4 percent.

Economists projected durable goods orders would be unchanged after a previously reported 0.8 percent increase in June, according to the median of 76 forecast in a Bloomberg News survey. Excluding transportation equipment, orders climbed 0.7 percent after a 2.4 percent increase a month earlier.

BP, Europe's second-largest oil company, added 1.4 percent to 523.5 pence and BG, the U.K.'s third-biggest oil and natural- gas producer, rose 1.7 percent to 1,184 pence.

Crude Oil rose for a third day on forecasts Tropical Storm Gustav will strengthen as it enters the Gulf of Mexico, home to 26 percent of U.S. production.

Anglo American added 1.8 percent to 2,850 pence. Copper, lead nickel, tin and gold advanced in London.

To contact the reporters on this story: Sarah Jones in London at sjones35@bloomberg.net; Michael Patterson in London at mpatterson10@bloomberg.net.